IHA InternationalCommercial

Approaches to Value

Three Approaches
to Value

IHA relies on industry-standard approaches to ensure comprehensive, reliable and defensible commercial valuations.

Income Approach

Based on the principle that the value of a property is directly related to its income. We employ both Direct Capitalization and Discounted Cash Flow (DCF) analyses.

  • → Direct Capitalization
  • → Discounted Cash Flow (DCF)

Sales/Direct Comparison

Analyzes recent sales of comparable commercial properties, adjusting for differences in location, size, amenities and market conditions to estimate market value.

  • → Market transaction analysis
  • → Adjusted per-square-foot benchmarks

Cost Approach

Based on the principle that property value should not exceed the cost of constructing a substitute of equivalent utility, less depreciation.

  • → Replacement cost estimation
  • → Accrued depreciation analysis