Estimate the value of a 25,000 SF, 12 year old industrial building using a cost approach. Replacement
Fantastic news! We've Found the answer you've been seeking!
Question:
Estimate the value of a 25,000 SF, 12 year old industrial building using a cost approach. Replacement cost is $42/SF for the warehouse shell (25,000 SF), and $88/SF additional for the 5,000 SF of office build-out inside the warehouse shell. The building is on a 50,000 SF site which is worth $10.50/SF of site area. Economic life expectancy is 30 years. In this case, effective age is the same as chronological age.
5A. Replacement cost:
5B. Value lost to depreciation by an Age/Life estimate:
5C. Depreciated cost of improvements is:
5D. Site Value is:
5E. Total value estimate of the asset by a cost approach:
Posted Date: