stabilized value Definition | Business Dictionaries from
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Business Glossary


Business Definition for: stabilized value
stabilized value

the value of a property after it reaches a normal occupancy rate and operating expenses .

Example:A recently built 1,000-unit apartment complex is expected to take 2 years to lease up at market rents. At that time, extra advertising will no longer be needed to attract tenants, so expenses will become stable. The appraiser provided a report offering a stabilized value of $100 million for the building. In order to derive its as is value , the appraiser then subtracted from that value for the reduced occupancy and higher expenses expected for the first 2 years.

Copyright © 2004, 2000, 1997, 1993, 1987, 1984 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.


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