Sales Comparison Approach
This is the most common method for valuing vacant industrial land.
- Compares recent sale prices of similar plots in nearby industrial zones
- Adjusts for size, location, zoning, and infrastructure differences
Cost Approach
Used when there are improvements or structures on the land.
- Estimates value by calculating land cost plus replacement cost of existing structures
- Deducts depreciation to reflect current condition
Income Approach
Typically applied to income-generating industrial properties like leased warehouses.
- Determines value based on net rental income and market capitalization rates
- Reflects investment value and long-term earning potential