OAR 738-010-0050: Rate of Return

(1) If the appraisal is to determine the value of unimproved land only, then the determined value shall assume a “target” rate of return of not less than ten percent (10%), in order to yield the appropriate annual ground rental rate. The rate of return applied shall be commensurate with the term of the lease and capital improvements to be completed on the property. (2) If there are any improvements situated on the property (including, but not limited to, paved ramp/apron, office facilities, hangars and terminal buildings), the determined value shall assume a “target” rate of return of not less than ten percent (10%), in order to yield the appropriate annual rental rate. The rate of return utilized shall be commensurate with the term of the lease and capital improvements to be completed on the property. (3) If an appraisal is performed, the appropriate rental rate shall be derived by multiplying the rate of return by the final determined value.