Gross Income Multiplier [0563]

An industrial warehouse that generates monthly gross income of $8,000 is being appraised.  If prior market analysis has determined that an annual gross income multiplier for this type of property is 9.5, what is the subject property's estimated value?

Solution:

Income = $8,000 x 12 = $96,000

Value = GIM x Gross Income

Value = 9.5 x $96,000 = $912,000