As observed from the scene , the area is a rawland which means that it's not developed yet . From the technical site description of the title , the property is adjacent to a river and a street , fronting the industrial building. The terrain of the property is plain with an area around 4 hectares approximately. After thorough occular inspection of the properties . To determine the highest and best use of the property , there are some basic questions to arrive at HABU ;
- Is the suggested use a reasonable and likely one?
- Is the use legal , or is there a reasonable likelihood that a legal entitlement for the use can be obtained?
- Is the property physically suited to the use or can it be adapted to the use?
- Is the suggested use financially feasible? and
- Of those uses that meet the first four tests , is the selected HABU the most productive use of the land?
The Highest and Best Use as Improved and as if Vacant is of Industrial use based from the following questions above. For the approaches to value , the Sales Comparison Approach and Income Approach is a reliable indicator to value. For the Comparables of Sales Approach , we will gather data that is the same nature with the subject property , we will search/inquire properties that is recently sold or listed which is an industrial lot and adjusted it to the elements of comparison to arrive at the market value. For Income Approach , we will apply ground rent capitalization using discounted cash flow , we have data for lease contract agreement up to 15 years. Discount rate for present worth factor at 6% . The value for sales comparison approach and income approach will then be reconciled to arrived at the final market value of the land.
Some considerations in valuing industrial lands is the zoning , location , optimal size , flow and volume of traffic , corner influence and public facilities and amenities.
