Medical Office Buildings and Condominiums are building structures subdivided into individual offices or suites used by medical professionals or companies to provide medical and pharmaceutical services. Medical Office Buildings can be occupied by the owner or the spaces can be leased. Medical Condominiums are sold and owned by medical professionals or companies.
For appraisal purposes, a county appraisal district (CAD) typically subdivides Medical Office Buildings into the categories shown above based on their highest and best use. A CAD will derive two different values when appraising a property: Market Value and Equity Value.
Typically, whether the property is occupied by the owner or not will determine the Market Value approach used by the CAD.
If the medical office spaces are leased, any of the three Market Value approaches may be used: Income Approach, Cost Approach or Sales Approach.
If the medical office building is occupied by the owner, typically the Cost Approach or Sales Approach may be used.
The Equity Value, also known as Uniform and Equal, is based on the CAD’s valuation of Comparable Properties and can also be used to fight for a lower value.
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