Shopping Center Appraisal – Retail appraisals are unique because the value of the property is closely tied to the revenue the space can produce. The purpose of retail real estate is primarily to generate retail sales. Rents and values in retail are directly tied to sales. Valuations of retail real estate have the following uses: Reporting for IFRS – NIIF, bank loans, buying or selling, and for internal decision making.


– Regional shopping centers
– Super-Regional shopping centers
– Neighborhood shopping centers
– Stand-alone retail
– Lifestyle shopping centers
– Street retail stores

Approaches, Relevance

– Cost
– Sales comp or market approach
– Income capitalization

Value Impacting Factors

Traffic, sales – traffic often determines how much sales a retail space can produce.

Visibility – tenants sometimes pay for visibility, which helps build brand recognition and eventually translates to sales

Important Inputs

– Rent, rental growth
– Rent as % of sales
– Tenant credit quality

Recent Trends

E-commerce, and its impact on retail.
Pandemic and its impact on retail traffic and formats – especially regional malls.
Proportional increase in space in retail centers used as entertainment.


Narrative Appraisal Report

A. Value impacting considerations – summary
B. Purpose, scope, limitations of the report
C. Land description

Improvement description D. Scope of work

E. Highest and best use
F. Approaches to value
G. Reconciliation
H. Certification statement

Notable Markets


Bogota, 26 Ave
Bogota, Chico
Medellin, Ave. Poblado


DF, Polanco
DF, Santa Fe
Nuevo Leon, Monterrey


Lima, Miraflores
Lima, San Isidro
Lima, Santa Cruz


San Jose, Escazu
Panama City