Jackson County, Oregon, USA

10 South Oakdale Ave, Room 300
Medford, Oregon 97501

Property Data Online

September 30, 2023
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Commercial / Industrial

Commercial Property (also called investment or income property) refers to buildings or land intended to generate a profit, either from capital gain or rental income. Commercial Property includes office buildings, industrial property (including but not limited to, electronic/high tech, wood/paper, food processing, primary and secondary metals, chemical, plastic, printing etc.), malls, retail stores, farm land, multifamily housing buildings, warehouses, land (including investment properties on undeveloped, raw, rural land in the path of future development. Or, infill land with an urban area, pad sites, and more), garages, and miscellaneous properties (including any other nonresidential properties such as hotel, hospitality, medical centers, and self‐storage developments etc.).

Industrial Property refers to properties which have an improvement value of more than $1,000,000.  The Department of Revenue has the responsibility for the appraisal and valuation of all industrial properties in the state of Oregon over $1,000,000. http://www.oregon.gov/DOR/programs/property/Pages/

Frequently Asked Questions

How is Commercial Property Appraised?
A.  The Assessor’s Office applies three approaches or three separate indications of value when determining commercial market value; cost approach, sales or market approach and income approach.  These values are reconciled to arrive at a final value conclusion.

Cost Approach – the value of the land is determined first, then replacement cost of the buildings or improvements are added.  Accrued depreciation is subtracted and the result is added to the land value.

Market Approach – sales of similar properties are analyzed to derive units of comparison such as price paid per square foot, or per rental unit, or per $1,000 of gross income.  These are applied to the subject property to arrive at an indicated value.

Income Approach – based on the concept that the value of income producing property is directly related to the level of income which can be expected over their economic life.  The economic rent for the property is estimated and expenses are deducted to derive an annual net income figure.  Net operating income is converted to a value estimate by dividing the net income by a capitalization rate.  This rate is derived by comparing net income by sales prices of comparable properties.  This rate is then applied to the net income of the subject property to yield a value estimate.

Seldom do three approaches generate the same value.  The final step is to reconcile the values developed under the three approaches.  The relative merit of each value indication is considered and the values correlated to arrive at a final value determination.