Final answer:
The Income approach is the most suitable for appraising an office building, as it assesses the property's value based on its ability to generate income.
Step-by-step explanation:
The most suitable appraisal approach for an office building is typically the Income approach. This method focuses on the income-producing capability of the property. The value is estimated by determining the present worth of future benefits, which includes the net operating income the property generates, capitalized into a value indication. This takes into account the expected rental income, expenses, and the capitalization rate, which is the rate of return on investment that investors of similar properties expect.
Other approaches like the Sales comparison approach and the Cost approach are less suitable for income-producing properties like office buildings, as they do not account for the property's ability to generate revenue directly. On the other hand, the Market approach could be considered a broader term that may encompass the Sales Comparison Approach in some contexts.