Consider a real estate investment trust (REIT) that primarily invests in commercial properties located in urban areas. The management team is evaluating various methods for appraising the value of their portfolio, which comprises office buildings, retail spaces, and industrial warehouses.
Discuss the primary valuation methods that the management team could use to determine the value of their real estate assets. In your answer, be sure to define each method, explain the circumstances under which each method is most appropriately applied, and the advantages and disadvantages associated with each method.