Complete sales comparison approach using the following information and data:

• In your adjustment grid on the following page, round all adjustments to the nearest percentage.
• Include a + or - to indicate the direction of each adjustment.
• Make the market conditions adjustment first and independent of all other adjustments.
• At the end, add together the location/physical adjustments because they are cumulative (don't forget to consider the direction of adjustments).
• Not all items will require adjustment.
• Remember, comparables are adjusted to the subject, so a superior characteristic would be adjusted downward, and an inferior characteristic would be adjusted upward.

Subject property:

312,000 SF warehouse

Sales A-D are all warehouses.

Market conditions adjustment

• Market conditions adjustments are applied before all the other adjustments, after which you should calculate a semi-adjusted $/SF before proceeding with the location/physical adjustments.
• Market conditions were stable from late 2019 until July 2020, when market conditions improved 30% due to demand for warehouse space for e-commerce. These conditions still exist today, in October 2021. Sales that took place prior to July 2020 sold during inferior market conditions.

Location adjustment

• Whitestown is considered to be 10% superior to Indianapolis.
• Greenwood is considered to be 15% inferior to Whitestown.
• Plainfield is considered to be 10% inferior to Whitestown.

Size adjustment

• Buildings in this market require a 1.5% adjustment per 10,000 SF of difference. Smaller buildings are considered superior, and larger buildings are considered inferior.

Age/condition adjustment

• An adjustment for age is 2% per year of difference. Older buildings are considered inferior, and newer buildings are considered superior.

Remember the market conditions adjustment is performed prior to location/physical adjustments. Location/physical adjustments are added up and can net each other out.

Last, present the range of adjusted $/SF and the indicated range of values in whole dollars, rounded to the nearest $10,000 for the subject building.

Your answer: SHOW ALL ADJUSTMENTS AS PERCENTAGE WITH + or - TO INDICATE DIRECTION OF ADJUSTMENT. Subject Sale A Sale B Sale C Sale D Date of sale Date of value: April 2021 November June 2020 July 2021 October 2021 2019 Location Indianapolis Whitestown Greenwood Indianapolis Plainfield Size 312,000 SF 255,000 SF 359,000 SF 470,000 SF 212,000 SF Effective Age 8 years 2 years year 14 years 10 years Sale Price N/A $26,775,000 $21, 181,000 $18,800,000 $17,596,000 Sale Price/SF N/A $105 $59 $40 $83 Transactional Adjustments Market N/A conditions Semi-Adjusted N/A $/SF (Sale price/SF after market conditions adjustment) Location/Physical Adjustments Location Size N/A Age N/A Net N/A physical/location adjustments Adjusted $/SF N/A Resulting (low to high) range of $/SF values for subject: Resulting (low to high) range of whole dollar values for subject:Question 1 {15 points) Complete a cost approach valuation using the following information: The subject is a 312,000 SF warehouse building (3% of the total square footage has ofce build-out). The property has a 780,000 SF parking lot on a 28.70-acre lot. Land values in the area are $2.25i'SF (remember, there are 43,580 SF in an acre). Building hard costs = $43.00!SF for warehouse building construction and $4878F for interior ofce build-out (so, a total of $91i'SF for the portion of the building that has ofce-build out) Parking lot costs = $4.2575F Soft costs = 7% EntIepreneurial incentive = 12% Effective age: 8 years Economic life: 45 years Round your answer to the nearest $10,000. Present the nal value in whole dollars and $ISF. Your answer: The formula for calculating the cost approach is as follows: Property Value = Replacementi'Reproduction Cost - Depreciation + Land Value Explanation: Total Wage: 28.70acre = 28.70 " 435805qft = 1250172 m ofce space = 3% of 312,000 m = 93603qft warehouse space: 302840 N ofce cost = $48 * 93803qft = $449,280 warehouse cost = $43.00 * 302840sqft = $13,013,520 parking lot cost = 780,000 emf; * $4025: $3,315,000 land values = [780,000+312000) m " $2.25 = $2,457,000 total Cost of ofcelwarehouse =449,280+13,013,520 = $13,482,800 Soft cost = 7% of $13,482,800 = $942,398 Entrepreneurial cost =12% = $1 ,815,538 Net value of structure 942,398 +$1,815,538) 0 + $2,457,000 = $5,014,932