ATLANTA—When it comes to commercial real estate appraisals, one size does not fit all. Indeed, various approaches fit various needs.

We've been discussing these approaches with Paulk Turner, director of J.H. Berry & Gilbert's appraisal and valuation services division. In part one of this exclusive educational series, we discussed the benefits of the cost approach valuation. In part two, we explored the right model for income-producing properties. In this segment, we will dive into the Income Approach.

“The Income Approach is based on the present worth of the future rights to income, and considers the property from an investor's point of view, with the basic premise that the amount and quality of the income stream are the basis for the value of the property,” Turner tells GlobeSt.com. “This approach is most applicable to multi-tenant properties with multiple existing or prospective leases in place, but is also applicable to single-tenant properties that are leased or have the potential to be leased.”