Association publications and library e-books.
Resource Center is about all types of helpful information resources for appraisers and real estate analysts--books, articles, presentations, data sources, and websites. (1) This edition of Resource Center discusses helpful books, articles, and other publications available from other associations plus the expanded number of e-books available through the Appraisal Institute's Lum Library.
Useful Articles from Up North
The Appraisal Institute (AI) and the Appraisal Institute of Canada (AIC) will be cohosting the 2017 International Valuation Conference in Ottawa, Canada. Get ready for this event by taking a look at some of the articles recently published in AIC's flagship magazine, Canadian Property Valuation, (2) http://bit.ly/CanadianProperty.
Canadian Property Valuation (CPV) recently published a pair of articles by Nathalie Roy-Patenaude on "Valuing Solar Energy" (vol. 60, bk. 1, 2016; vol. 60, bk. 2).
Part 1 of this article (http://bit.ly/SolarPartl) discusses participants' obligations and solar panel financing under government programs. Part 2 (http://bit.ly/SolarPart2) deals with how solar energy systems are valued and practitioners' obligations under the Canadian Uniform Standards of Professional Appraisal Practice.
There are a number of differences between Canada and the United States as to solar energy regulation, assessment, and taxation--as well as energy rate impact--but the article has some good ideas and is worthy of reading, particularly for residential appraisers involved in the valuation of properties with solar installations existing or proposed.
Effects of High-Voltage Transmission Line Corridors
Another CPV article is "Injurious Affection and HVTL Corridors" by Daniel Doucet, Norris Wilson, and Paul D. Bender (vol. 60, bk. 1, 2016; http://bit.ly/HVTLcorridors). It discusses a study involving over 70 properties on four high-voltage transmission line (HVTL) corridors in Ontario, Canada, covering ten years of data. A variety of property use types and sizes were included in the extensive study, and impact by corridor-crossing type was one of the several factors of possible influence considered. The article reports, "That study concluded that there was only nominal property value loss to properties ... because so many factors affect property value, the influence of HVTL may play only a minor role." (pages 12-13) The conclusion indicates that value impact was "mainly on properties with improvements, and the value loss is averaged down in larger land holdings." Further, "different types of crossings of the HVTL corridor can impact the utility of a property to different degrees." The conclusion continues, "However, in the case of residential properties in urban or suburban areas, the green space of the lines can be seen as a positive factor on value." (page 15)
Appraisal Office or Appraisal Department Management
Key performance indicators (KPIs) are the focus of another 2016 CPV article, "KPIs: Valuable Insights or Just More Paperwork?" by Greg Fandrick (vol. 60, bk. 2; http://bit.ly/KPIvaluableinsights). KPIs are used to see how an individual or organization is performing. The article's introduction states, "success depends on management's ability to identify KPIs and pay careful attention to what the information is telling them. ...Modern appraisal firms are frequently so concentrated on managing daily tasks, meeting deadlines, and securing the next job that the idea of taking time to surface KPIs for their business is not realistic. As a result many of us default to running our businesses by intuition." (page 26).
The article discusses analysis of order source and volume, billings and revenues, cash flow, profit margins, and such to provide owners and managers with information and insight, particularly for identifying efficiencies and inefficiencies, profitable and unprofitable, clients and activities. This article is a thought stimulator and idea seed for the appraisal office owner or department manager.
New Resources in the Lum Library
A number of books recently have been added to the holdings of the Appraisal Institute's Y. T. and Louise Lee Lum library (http://bit.ly/LumLibrary). Here is some insight into two of them.
A Practical Guide to Commercial Real Estate Transactions: From Contract to Closing, 3rd ed.
By Gregory M. Stein, Morton P. Fisher, Jr., and Michael D. Goodwin. (Chicago: American Bar Association, 2016) 624 pages. Available for purchase at www.ShopABA.org, and for use through the Appraisal Institute's Lum Library.
Appraisers involved in the valuation of commercial property need a thorough understanding of the mechanics of commercial real estate transactions, and the text A Practical Guide to Commercial Real Estate Transactions: From Com tract to Closing can help in this regard. Even though the target readership for this book is real estate and general practice lawyers, many appraisers, commercial brokers, and investors stand to benefit from this resource, particularly in communicating with lawyers involved in a transaction. Written by three nationally respected real estate lawyers, the nine chapters (plus extensive appendices) address the mechanics of transactions from negotiation to the purchase and sale agreement, due diligence, financing and loan documents, and closing and post-closing matters.
This volume is a comprehensive, clearly written real-world, hands-on, guide for lawyers primarily intended for use by intermediate-to-advancedlevel users. It is a narrative extensive checklist with clear commentary and good organization. The Appendices are downloadable from an Inter net library of forms. Here is a glimpse into this text's contents by chapter.
Chapter 1 Introduction. Chapter 1 includes practicalities in transactions, the mechanics of the transaction, gathering information, and bargaining positions.
Chapter 2 The Purchase and Sale Agreement.
Chapter 2 involves buyer and seller perspectives, negotiation positions, the Statute of Frauds, some key definitions, earnest money, removal of personal property, seller and buyer representations and warranties, closing conditions and mechanics, apportionments and prorations, and many more topics for consideration in this important foundation-of-the-transaction agreement.
Chapter 3 Due Diligence. Chapter 3 contains a comprehensive checklist and commentary for the topic including definition of due diligence, and coverage of a variety of topics including title and survey matters, lease reviews, property condition matters, legal entity matters, financing problems, remedies for problems found in the due diligence process, and others.
Chapter 4 The Loan Commitment. Chapter 4's thirty-two pages covers the borrower and lender perspective, terms of the loan commitment, assignability, equity, and mezzanine financing.
Chapter 5 Post-Loan Commitment Due Diligence. Chapter 5 has information about due diligence and the loan commitment, remedies for problems found, title and survey concerns, liens, lease review, purchase options, landlord construction obligations, estoppels, subordination, environmental concerns, insurance, prior mortgages and appraisal matters.
Chapter 6 Loan Documents. Chapter 6 covers wording in the note and the mortgage, clauses such as due-on-transfer, prepayment, yield main tenance and defeasance, limitations on junior financing, pre-foreclosure remedies, foreclosure, nonrecourse provision, escrows or impounds for payment of taxes and insurance, deeds of trust, assignment of leases and rents, fixture filings, security agreements, guarantees, participation agreements, seller financing, loan assumptions, and subordinate lending.
Chapter 7 Preparing for the Closing. Chapter 7, along with the following Chapter 8, provides a thorough closing checklist and discussion.
Chapter 8 Running the Closing. Chapter 8 focuses on the structure of a typical closing, execution of documents, delivery and distribution of funds.
Chapter 9 Post-Closing Matters. Deals with recording of documents, follow-up matters, and organizing the transaction file.
Appendices. The fifteen appendices include forms for a variety of topics including, but not limited to, letter of intent, purchase and sale agreement, due diligence and closing checklist, lease review summary, loan agreement, promissory note, mortgage and security agreement, assignment of leases and rents, environmental indemnity agreement, and post-closing agreement.
Recommendation. This is a good reference for valuers and analysts who need to understand more about the legal and mechanical aspects of real estate transactions to better investigate and analyze sales information.
Urban Agriculture: Policy, Law, Strategy, and Implementation
By Martha H. Chumbler, Sorell E. Negro, and Lawrence E. Bechler. (Chicago: American Bar Association, 2015) 344 pages. Available for purchase at www.ShopABA.org and for use through the Appraisal Institute's Lum Library.
As an appraiser in an urban or suburban area, you might have not yet dealt with an urban agriculture related assignment, but chances are that you will.
Urban Agriculture: Policy, Law, Strategy, and Implementation, published by the American Bar Association, is a significant resource for understanding the phenomenon, the history of the concepts involved, regulatory and legal issues involved, the property owners, and conversions to urban agriculture, and thus development of valuations.
Some widespread geographic areas in the United States (and elsewhere) are experiencing a fledgling demand for, and development of, non-rural agricultural land uses. Most such development involves small urban community gardens, urban or suburban small farms, agricultural common areas, and even commercial agriculture. The scale of each project or development varies widely, as do neighboring property types and sizes affected, positively or negatively. Urban agriculture includes food production, greenbelts, fish farms, farm animals, municipal facilities, restaurant-supported salad gardens, orchards, rooftop gardens, beehives, and much more. (3)
The book Urban Agriculture was written by three main authors and editors, and eighteen major contributors who are experts in various facets of urban agriculture. It does not deal with valuation directly, nor valuation methods; rather, it gives valuers insights and understanding as well as some specifics about urban agricultural land use policies, and the legal and economic considerations that would be part of fact gathering and analysis. As indicated in the book's preface, "The increase in popularity in urban agriculture can be attributed to increased interest in a variety of economic, social, environmental, and health issues and goals, including building communities, investing in our local economies, increasing food security and access to affordable, healthy food, lowering and offsetting greenhouse gas emissions, increasing exercise, and reconnecting to nature, generally, and our food sources, specifically." (page v)
This volume has seventeen chapters organized into five major parts. Here is some insight to the coverage:
Part I Context for Urban Agriculture: Background and Basic Principles. Part 1 has information about the growth of interest in the urban agriculture topic, planning and legislating, urban planning, changing laws and regulations to accommodate urban agriculture, federal support, current catalysts for growth, and current models, including urban farm, community gardens, home-based agricultural uses, business models, government and nonprofits.
Part II Government Regulation of Urban Agriculture. Part 2 includes chapters on preemptive land uses, land use and zoning, and integrating agricultural uses with other established urban land use. Included are items, many with examples, such as what kinds of urban agriculture should go where, what standards should apply, incentivizing urban agriculture, urban animal husbandry, "micro livestock" types, regulations, and examples.
Part III Legal Rights and Responsibilities. Part 3 covers urban agricultural nuisances and state right-to-farm laws, environmental implications, and tax implications of urban agriculture (including use value or value in use and tax abatements), liabilities and incentives, soil contamination problems, who pays for cleanup, and similar issues.
Part IV Urban Agriculture as a Tool to Address Economic, Social, and Natural Resources Issues.
The material in Part 4 addresses community involvement, converting vacant land and lots to agricultural uses, and food distribution. Food deserts are addressed, particularly in the realm of urban agriculture. One chapter, "Converting Vacant and Abandoned Lots to Urban Agricultural Uses," addresses the problems and mechanics involved in such conversions, and discusses due diligence, title and environmental issues, and land banking (with examples).
Part V Case Studies: Urban Agriculture in Action. Part 5 of the text offers some urban agriculture case studies, including examples from Atlanta, Baltimore, Milwaukee, Minneapolis, Chicago, Detroit, and Fayetteville, Arkansas.
For those who want to dig deeper, below are some additional good resources for information to better understand the urban agriculture topic:
* US Department of Agriculture, National Agricultural Library http://bit.ly/NALurban
* Inhabit, "Top 10 Cities in the US for Urban Farming"
* Urban Agriculture articles in The New York Times
* Forbes. "Urban Farming: Fad or Futureproof?"
* Ensia, "Urban Farming Is Booming, But What Does It Really Yield?"
Recommendation. This is one of those books that adds to your understanding of the topic. You may not have need to add it to your library though, as it is available to you in the Lum Library.
Other ABA publications likely to interest real estate appraisers and analysts
The American Bar Association website (www.ShopABA.org) has a selection of additional publications covering diverse topics of possible interest to you. Here is a sampling:
* Eminent Domain: A Handbook on Condemnation Law
* Fifty-State Survey: The Law of Eminent Domain
* The Real Estate Litigation Handbook
* The Lease Manual: A Practical Guide to Negotiating Office, Retail, and Industrial Leases
* The Commercial Office Lease Handbook
* The Broker's Guide to Commercial Leasing
* Back to the Basics in Commercial Real Estate Finance: What Lenders Look for in Commercial Leases
* 2015 Fundamentals: Commercial Real Estate Leasing (audio download)
* Expert Witnesses: Maximize the Effectiveness of Your Expert at Trial
* Preparing Witnesses: A Practical Guide for Lawyers and Their Clients, 4th edition
Helpful Resources from Associations
A number of other trade and professional associations have publications and studies of interest to real estate valuers and analysts. Here's a quick look at three associations with good recent materials available.
From the National Association of Realtors (NAR)
The National Association of Realtors' website, www.Realtor.org, has regularly updated publications and articles that you may find interesting and helpful. The site offers research reports covering commercial property, consumer opinion, financing, land markets, market data, and technology at http://www.realtor.org/research-and-statistics. For an overview, check out an umbrella publication available at that site, The NAR Resource Guide--A Guide to the Surveys, Reports, Data, and Products that NAR Research Has Created. The mid-2016 update is available at http://bit.ly/NARresearch. Some of the reports include the following:
* Commercial Real Estate Lending Survey
* Commercial Real Estate Market Survey
* Commercial Real Estate Outlook
* Economic and Commercial Outlook Presentation
* Expectations and Market Realities in Real Estate
* Home Buyers and Sellers Generational Trends
* Housing Affordability Index
* Local Market Reports (4)
From the National Apartment Association (NAA)
An executive summary of the 2016 NAA Survey of Operating Income and Expenses in Rental Apartment Communities, "Operations Take Center Stage in 2016" by Christopher Lee, available at http://bit.ly/NAAsurvey.
The survey data includes results for over 2,500 apartment properties, with income and expense information on a per unit, per square foot, and per cent of gross potential revenue. Operating expenses breakdowns include salaries and personnel, insurance, taxes, utilities, management fees, administrative, marketing, contract service, repair and maintenance, and totals for both individually metered and recovery system properties, and master metered properties. Subsidized properties are part of the survey. Outlays for capital expenditures are also part of the survey report.
Further breakdowns are by region of the United States; apartment project sizes from less than 100 units to 500 or more units, in seven size categories; and age of property. The report includes a glossary of terms so the user has a clear understanding of terms such as administrative expenses, capital expenditures, GPR residential, insurance, maintenance, management fees, marketing, other revenue, revenue losses to collections and vacancies, utility expense, and others.
To purchase the full 2016 NAA Survey of Income and Expenses as well as issues from previous years, go to http://bit.ly/NAAstore. Real estate analysts will find more-general information about trends in the apartment market in NAA's magazine, Units, which covers a wide range of topics (units.naahq.org).
From the CCIM Institute
The CCIM Institute's magazine, Commercial Investment Real Estate (CIRE), has a recent thought-provoking article, "Tipping Point" by Beth Mattson-Teig (Nov.-Dee. 16); the descriptive subtitle for this article is "Are Apartments Racing toward a Peak or Will the Boom Continue?" Read it at http://bit.ly/AptPeak.
The article discusses drivers of apartment demand, construction trends, saturation point concepts, NCREIF capitalization rates historically and forecasts, commercial real estate transaction volume, and sector outlook.
The same issue of the magazine has articles on tax-deferred exchanges, "Exchanging Properties," by Sara S. Patterson, and on "Tenant Creditworthiness" (part 1) by Christopher Fi. Volk, which addresses how tenant credit ratings affect leasing. For a look at 2016 CIRE issues as well as those for the previous four years, go to http://bit.ly/CIREarchive. There you will find other interesting recent articles for valuers and analysts, including the following:
* "industrial Roars Ahead--Efficient Distribution Networks Mirror Explosive Growth in E-Commerce"
by Beth Mattson-Teig (Sep.-Oct. 16). This article examines changing demand, logistics, and speculative development in industrial properties.
* "Gold Rush" by Sara S. Patterson (Jul.-Aug. 16) is about the evolving self-storage industry.
* "Big Box Breakup" by Beth Mattson-Teig (MayJun. 16) looks at retail stores' shrinking footprints and excess space. (5)
An impressive number of e-books are now available online and easily accessible through the home page of the Lum Library (http://bitdy/LumLibrary; login required). There you will see the box "EBSCO Research Databases" on the far right of the home page. (6)
This EBSCO resource covers an extremely broad range of topics, with over 5,000 academic and trade journals, e-books, working papers, and reports. Currently, 73 e-books of interest to valuers and analysts are available in the Lum Library through EBSCO; click on the "EBSCO eBooks" link in the EBSCO Research box to see the full list of books. Some items of specific interest are listed below.
* 24-Hour Cities: Real Investment Performance,
Not Just Promises by Kelly, Hugh. 1st ed. New York: Routledge, 2016.
* International Valuation Standards: A Guide to the Valuation of Real Property Assets by Parker, David. Chichester, West Sussex, United Kingdom: WIley-Blackwell, 2016.
* Mixed-Use Development: Nine Case Studies of Complex Projects by Schwanke, Dean. Washington, DC: Urban Land Institute, 2016.
* Urban Real Estate Investment: A New Era of Opportunity by Cisneros, Henry, and Gil Garcetti. Washington, DC: Urban Land Institute, 2015.
* Determining the Economic Value of Wafer; Concepts and Methods by Young, Robert A., and John B. Loomis. 2nd ed. Hoboken, NJ: Routledge, 2014.
* Multifamily Housing Development Handbook by Schmitz, Adrienne. Washington, DC: Urban Land Institute, 2014. This authoritative resource explains best practices, techniques, and trends in multifamily housing developments.
* Financial Feasibility Studies for Property Development: Theory and Practice by Havard, Tim. Hoboken, NJ: Routledge, 2013.
* Towers, Turbines and Transmission Lines: Impacts on Property Value by Dent, Peter, Sally Sims, and Sandy Bond. Hoboken, NJ: Wiley-Blackwell, 2013.
* RSMeans Illustrated Construction Dictionary by R.S. Means Company. Vol. 88. Student ed. Hoboken, NJ: R.S. Means, 2013. This concise student edition of the most widely used dictionary for construction and design professionals offers explanations of construction-related terms and concepts. Illustrated.
* Building Type Basics for Senior Living by Perkins, L. Bradford. Vol. 21.2nd ed. Hoboken, NJ: Wiley, 2013.
* Professional Real Estate Development: The ULI Guide to the Business by Peiser, Richard B., and David Hamilton. 3rd ed. Washington, DC: Independent Publishers Group, 2012.
* The Dimensions of Parking by National Parking Association. 5th ed. Washington, DC: Independent Publishers Group, 2010.
* Shared Parking by Smith, Mary S. 2nd ed. Washington DC: Urban Land Institute, 2005.
* Real Estate Development: Principles and Process by Miles, Mike E. et al. 4th ed. Washington, DC: Urban Land Institute, 2007.
* Business Park and Industrial Development Handbook by Christensen, Marvin F., and Anne Frej. Washington, DC: Urban Land Institute, 2001. This handbook covers the best practices, techniques, and trends. It explains the development process step-bystep and includes fourteen case study examples.
About the Author
Dan L Swango, PhD, MAI, SRA, is president of Swango Real Estate Counseling and Valuation International in Tucson, Arizona. He is experienced in valuation and consulting involving equity investment, debt security, risk reduction, profit optimization, estate planning and settlement, buy/sell opportunities, and eminent domain. Swango is an instructor and communicator with domestic and international experience. He is namesake of The Appraisal Journal's Swango Award, past Editorial Board chair and editor-in-chief of The Appraisal Journal, and a current member of the Journal's Review Panel. Contact: firstname.lastname@example.org
If you know of additional resources of interest to real estate analysts and valuers--or would like to suggest topics for this column--please contact the author.
by Dan L. Swango, PhD, MAI, SRA
(1.) For easy, direct access to the URL addresses noted throughout this article, read this column online. Go to http://www.myappraisalinstitute.org/taj/Default.aspx, and click on "View Current Issue." (Login required.)
(2.) You will also find a direct link to AlC's magazine in the "External Information" section of the Lum Library homepage, http://bit.ly/LumLlbrary. The magazine's webpage provides access to 3D (flip-page) and pdf (downloadable) versions of current and past issues.
(3.) See Katherine H. Brown, Urban Agriculture and Community Food Security in the United S: Farming from the City Center to the Urban Fringe (Venice, CA: Urban Agricultural Committee of the Community Food Security Coalition, February 2002).
(4.) The Local Market Reports (PDF downloadable) are available by state and their major metropolitan areas. The reports Include material about housing price changes, drivers of local supply and demand, employment by Industry, new housing construction, foreclosure rates, affordability, the mortgage market, Realtor price expectations, and more depending on locality and available information.
(5.) Take a look at Don Cavan's article in this issue of The Appraisal Journal for additional discussion of this topic in the retail sector.
(6.) Note the EBSCO box on the homepage also includes links to e-books how-to information.
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|Author:||Swango, Dan L.|
|Date:||Sep 22, 2016|
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