Calculate the Appraised Value of the Commercial Property:

2. Replacement Decision: Use the following information to determine the replacement value of the building and property. The building measures 500 x 250 feet, 2 stories high, and would cost $200 per foot to replace. It has an economic life of 25 years and 12 years have lapsed since the building was constructed. Additional Information follows:

• Discount rate 8%
• Repairable Physical Depreciation $95,000
• Repairable Functional Depreciation $120,000
• Non-Repairable Functional Depreciation $155,000/year
• Non-Repairable External Depreciation $80,000/year
• Site Value $1,200,000

Calculate the Value of this property: LABELS are required

3. GRM/GIM Estimates of Appraised Value:

Subject Comp. 1 Comp. 2 Comp. 3

V & C rates 3% 3% 3.6% 4.1%

Units 195 190 195 205

Average Rent $910 $915 $920 $925

Selling Price ? $16,500,000 $15,000,000 $18,200,000

• Calculate either the Gross Rent Multiplier for the Comps:

• Show the estimated price range from a low value to a high value for the subject property: