Property Residual Technique

The Property Residual Technique is a capitalization technique in which the net operating income is attributed to the property as a whole, not to separate land and building components.

 

Yield capitalization computes the present value of the income stream and adds the present value of the reversion at the time the investment will terminate.  The total of the present value of the two cash flows is the present value of the property.

Page url: http://www.georgiaappraiser.com/glossary/index.html?propertyresidualtechnique.htm