A strip mall would most likely be appraised using which approach?

The income capitalization approach is the most suitable method for appraising a strip mall because it focuses on the income-generating potential of the property. This approach is particularly effective for commercial real estate, like strip malls, where the value is heavily influenced by rental income and the operational revenue it can generate for investors.

In this method, appraisers analyze the income that the property produces and convert that income into a value estimate, using various calculations to determine potential future cash flows and return on investment. Investors typically base their purchasing decisions on the income a property can generate, making this approach a practical choice in the realm of commercial properties.

While the sales comparison approach could be used, particularly for residential properties or where there are adequate comparable sales, it may not adequately capture the intricacies of commercial income potential. The cost approach, which values a property based on land value plus replacement costs minus depreciation, is generally more relevant for unique properties where income isn't the primary concern. The term "market approach" is often used interchangeably with sales comparison, which further highlights that the income focus predominates for a strip mall appraisal.