Special Properties

Hotels and Shopping Malls

Some properties are adapted for a specific unique purpose. This can include sports facilities, schools, prisons, various types of technical facilities, and marinas, among others.

A common term for this category of properties is specialized real estate. When land and buildings are no longer used for their original purpose, they are often difficult or impossible to use for other activities – unless more or less extensive renovation work is undertaken.

Valuing specialized real estate requires the appraiser to carefully familiarize themselves with the applicable conditions and circumstances. In addition, an assessment must be made of the property's most likely future and development.

Will the property be used for its intended purpose for a long time, or will the activity cease?
Can the existing buildings be used for other activities, and what are the costs of renovating or demolishing them?

The questions are many and must be weighed together into a likely outcome in the final assessment.

Very close to the group of specialized real estate are hotel properties and shopping mall properties.

A common denominator for these property categories in a valuation context is that it is important to also analyze the business conducted on the property. For hotel properties, this means assessing the current and future financial situation and the competitive environment of the hotel business. The same assessment is made for shopping mall properties, while many other important factors must also be considered.

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