Specialized Properties

Within specialized property valuation, the most common assignments include wind farms and photovoltaic parks developed for the generation of green or renewable electricity. Although most components are movable assets, the fact that they cannot operate independently of the land on which they are installed means they are analyzed as integrated assets.

Because these properties generate income, the most suitable approaches are the income approach, especially discounted cash flow (DCF), and the cost approach for non-real-estate components. The exact method depends on purpose, available data and the legal characteristics of the property.

Fees for specialized property valuation are usually closely linked to the installed power of the wind or photovoltaic park and to the purpose of the engagement. The number of hours needed to deliver the final product – the valuation report – also matters significantly.