Valuation Method for Real Estate Investment

As part of a real estate investment analysis, a portfolio manager is evaluating a commercial office building located in an urban area. The manager is considering different valuation methods to determine the fair market value of the property. She is particularly interested in a method that takes into account both the rental income potential and the costs associated with maintaining the property. Furthermore, she wants a valuation approach that is widely accepted in practice and reflects the present value of the anticipated cash flows from the investment.

Which valuation method should the portfolio manager consider using?