A Connecticut assessor is determining the value of a commercial office building for property tax purposes. The building generates consistent annual net operating income. Which appraisal approach is most appropriate and most commonly used by Connecticut assessors for income-producing commercial property?

Correct Answer

D) Income approach, because it reflects the property's ability to generate income

For income-producing commercial properties, the income approach (also called the income capitalization approach) is the most appropriate valuation method because it directly reflects the property's value based on its ability to generate net operating income. Connecticut assessors follow standard appraisal methodology and apply the income approach as the primary method for commercial investment properties.