Appraisal of Medical Office Buildings

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Who should enroll General real property appraisers
Description

Changing trends in medical practice, health insurance, and demographics are fostering changes in the design of and demand for medical office buildings. This program is designed for commercial appraisers who want to branch out into the specialty of medical office building appraisal.

Appraisal of Medical Office Buildings emphasizes how appraising medical office buildings differs from appraising other types of commercial properties. It focuses on the sales comparison and income approaches, and participants are expected to be trained in both as well as in the application of discounted cash flow analysis. Due to time limitations, the cost approach is not presented. However, cost-approach methodology for medical offices is consistent with that used for any other commercial property type and is important to valuing recently constructed or new facilities. The program identifies the key differences between medical office construction and standard office construction. In addition, the program uses historical data to illustrate long-term trends and their influence on the market.

Objectives
  • Differentiate between the types of healthcare services and the types of healthcare facilities they occupy.
  • Examine how changes in the healthcare industry are influencing medical office demand.
  • Analyze how practice trends are changing the size, configuration, and location of medical offices.
  • Examine how the medical office market is responding to healthcare trends.
  • Distinguish characteristics of medical office buildings from standard office buildings.
  • Analyze important clauses to consider in a review of medical office leases.
  • Describe trends in the medical office leasing market.
  • Illustrate when to apply the sales comparison approach for valuation of a leased fee interest in a medical office building.
  • Demonstrate the use of appropriate guidelines for selection of comparable sales for valuation of a leased fee interest in a medical office building.
  • Properly apply transactional and property adjustments in the sales comparison approach for leased fee interests in medical office buildings.
  • Distinguish between major factors contributing to the economic characteristics adjustment for a medical office building.
  • Demonstrate proper methodology in the sales comparison approach for valuing a fee simple interest in a medical office building.
  • Distinguish how and when to use direct capitalization for valuation of a leased fee interest in a medical office building.
  • Examine and consider the following factors in estimating the leased fee capitalization rate: tenant quality, rent level, and lease type.
  • Examine and consider the following factors in estimating the leased fee capitalization rate: term remaining, options remaining, location, and others.
  • Illustrate direct capitalization for valuation of leased fee interests in single-tenant medical office buildings.
  • Demonstrate proper data collection techniques to support leased fee capitalization rates for medical office buildings.
  • Demonstrate proper application of discounted cash flow analysis in the valuation of leased fee interests in medical office buildings.
  • Illustrate proper methods for estimating a reversion in the valuation of leased fee interests in medical office buildings by discounted cash flow analysis.
  • Demonstrate proper application of discounted cash flow analysis in the valuation of leased fee interests in single-tenant medical office buildings.
  • Demonstrate proper application of discounted cash flow analysis in the valuation of leased fee and fee simple interests in multi-tenant medical office buildings.
Prerequisites Knowledge and experience with basic appraisal theories and fundamental appraisal practices


Refer to this page for details of state approval hours for this course.

  • Attended Only:

    75
  • Attended Only:

    75
  • Attended Only:

    75
7 hours
90

Yes. Participants must complete mandatory assignments in this program. Please plan your time accordingly and allow up to 5 days for the instructor to review your assignments. The instructor may ask for a re-submission of incomplete assignments. You may advance through the program while you are waiting for your instructor to review your work. You may also contact the instructor to request expedited review.

No
N/A
Intermediate
Classroom Recommendations and Requirements Synchronous Recommendations and Requirents
Classroom Requirements

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