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Mansbach did not include the mezzanine floors as rentable space
because
[g]iven the storage use and low income potential
associated with the mezzanine space due to its low
ceiling heights, it is anticipated that a potential
buyer would not allocate value to this space in making
its price decision.
Mansbach also allocated 50 percent of the $87.50 determined value
to the 876 square feet available in the Third Floor office space
due to its "shell condition" and use as storage space at the time
of donation.
Under the comparable sales method, Mansbach estimated the
value of the retail/office component of the property to be
$983,850, computed as follows:
10,806 square feet x $87.50 = $945,525
876 square feet x $43.75 = 38,325
Total indicated value $983,850
5. Income Capitalization Approach--Retail/Office
With respect to the income capitalization approach, Mansbach
determined a value for the retail/office component, both with and
without the Jacobs lease. Mansbach did not consider either the
1984 lease or the 1987 lease by the County of San Mateo in his
income capitalization calculations.
To determine economic rent for the property, Mansbach looked
at average income and expense information for suburban office and
retail buildings in the San Francisco Bay Area in 1987 compiled
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