Which type of appraisal focuses specifically on properties that generate income?

The correct choice is focused on properties that generate income, making it essential for evaluating investments, financing, or other financial considerations related to property. A commercial appraisal specifically deals with real estate that is used for business purposes, including office buildings, shopping centers, hotels, and multifamily residential properties. Under this type of appraisal, the appraiser examines the property's income-generating potential, using methods such as the income approach, which estimates the value based on the expected future income it can produce.

This approach is particularly important because it helps investors and stakeholders assess the feasibility and profitability of a property as a business asset. By concentrating on income generation, commercial appraisals provide valuable insights into market trends and investment opportunities, making them vital for both buyers and sellers in the market.