What is typically used to estimate land value for commercial property?

Depth tables are commonly used to estimate the value of land, particularly in commercial real estate. These tables provide a method for determining the value of a parcel of land based on its depth and the dimensions of adjacent properties. By analyzing various factors, such as the depth of the lot compared to the street front and the configuration of the surrounding area, appraisers can derive values that reflect market demand and usability.

The use of depth tables helps ensure that appraisals are grounded in comparable sales and market trends, providing a methodical approach to estimating land value. This is particularly critical in commercial properties, where land is often valued based on its potential for development and income generation.

While options like replacement cost analysis, historical price averages, and income-generating potential can provide insights into property valuation, they are typically more relevant for buildings and improvements rather than the land itself. Depth tables specifically focus on the land component, making them a key tool for this purpose in the context of commercial property valuation.