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The PA presented 4 comparable :sales most of which were single tenant office or retail buildings (only 3 of the sales were considered applicable as one was sold for land value): The 3 sales indicated a range froinf $224 SF to $634 SF. No -cost of sale adjustment was shown or applied.:The range of the sale supported the- PA's belief that the subject's assessed value of $210: 9' or $20-1 SF was reasonable. The PA presented an income approach. The PA use a market rental rate of $20.00 SF NNN. The rent rate was applied to the 1_,002 SFof GBA and resulted: in an estimate of annual.rent (PGI) of $20;040. A: 5% vacancy and collection lass was applied to the PGI for an EGI of $19,038; Expense of $2.09: SF or. $2,094: (11% of EGI due to the NNN lease) were deducted and :resulted :in a NOI of $.16,944. The net operating income was capitalized at 7.0"x'0: (no tax load). This indicated a preliminary value of $242,055 and was rounded to: $240,00:0. The PA made no deduction for the Cost of Sale (COS)in the. income approach.:: The PA concluded that the subject's assessment of $210,72$ is well below the indicated value by the income approach. (It is noted that, if the PA had deducted a 15% COS, as shown on the DR -493, from the preliminary value of $242;055, it would have resulted in a just value indication of :$205,747:) Two rent comps, one from LoopNet and one from the MLS, were provided to support the rental rate. The comparables ranged from $19.00 SF NNN to $30.00 SF NNN. This supported the use of $20 SF NNN for the subj ect. The balance. of the support for the income approach was from the Commercial Market Insights Report by the National Association of Realtors.:: Summary of evidence presented by the petitioner: The petitioner valued the subject property with:' an income approach. The' petitioner utilized a market rental rate of $14.00 SF NNN and applied it to the gross building area of 1,002 SF This resulted in a PGI of $14,028. A vacancy and collection loss of 1016/0 was applied and indicated an EGI of $1'2,625.Operating expenses of . $1,263 (10% of EGI), including real estate:taxes, were deducted and.indcated a NOI of $11,363. The NOI was capitalized: at 7.0% (no tax load). This indicated a preliminary value of $162,324. A 15% cost of -sale was made for the Ist and 8'h criteria and indicated a just value of $137,975: This.was the requested just value. The petitioner presented: 2 rent comparables from: CoStar to support the income approach inputs. 2023-043 38 - Page 3 of 5