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Economic Analysis 34 <br />Commercial Land Site - SWC of Middle Street and Market Place Drive <br />COVID-19 Impact <br />The Coronavirus/COVID-19 has had a significant effect on the real estate market. We recognize <br />those effects, but sufficient transactional evidence is not yet available given how rapidly this <br />situation has developed. The impact of COVID-19 may be extensive, but will vary by location, <br />property type and general economic conditions. This then requires consideration of various data <br />sources and methods in order to properly reflect the impacts on value and operation of real <br />property. <br />Current Local Market Evidence <br />Pertinent information from the local perspective includes: <br /> Brokers currently marketing land sites similar in nature to the subject property were <br />contacted for this analysis. The consensus of those brokers indicates that overall, <br />minimal impact is present in the market. Slower activity was the primary negative factor <br />that was noted by these participants. Several active users are still reported to be looking <br />for this type of land in the TCMA. No price impacts were suggested by those contacted. <br /> Marketing times for land are typically longer than improved properties as new <br />development and entitlement can extend the process. Given the expectations of the <br />market participants, the delays anticipated are not expected to impact the value of land in <br />the near term at this time. <br />Summary of Findings <br />We have interviewed market participants about the impact on real estate values and underwriting, <br />and the consensus is (based on the definition of willing seller and willing buyer -- under no undue <br />duress) that this is not the best time to market a property for sale. The opinions also suggest <br />that certain categories of real estate assets are more impacted than others (i.e., hotels and most <br />retail). <br />However, these opinions generally suggest little impact to land. Land uses can shift with market <br />expectations, and development projects usually have a longer time frame to deal with potential <br />delays, as were being seen with the shelter in place orders that are now coming to an end. <br /> We have analyzed market conditions as of the effective date of this appraisal and <br />incorporated necessary projections in this appraisal as needed. In this instance, we are <br />appraising land only, and no significant impact is projected.