What does the land residual technique aim to estimate?

The land residual technique aims to estimate land value by analyzing the income generated from improvements made on the property. This method is particularly useful in scenarios where the income potential of a property is significant, such as commercial real estate. The technique works by calculating the total income produced by the property, subtracting the estimated expenses associated with the improvements (such as operating costs and required return on the improvements), and determining what remains. This residual amount is interpreted as the value attributable to the land itself.

In contrast, other options focus on unrelated aspects of property appraisal. One option discusses architectural design, which does not pertain to value estimation. Another option relates to the structural integrity of a building, also separate from land valuation processes. Lastly, assessing environmental impact does not directly contribute to determining land value, making it distinct from the focus of the land residual technique. Therefore, option C precisely reflects the purpose and methodology of this appraisal technique.