QUESTION $1$

The subject property is a warehouse that is $50$ feet by $200$ feet by $16$ feet$-$high. The warehouse is cement block faced with brick on a concrete slab and was built in $1980$ for $$75$ per square foot. The appraiser has estimated the property s current land value as $$500,000.$ The current replacement cost of the structure is $$150$ per square foot and its effective age is $20$ years, with a remaining economic life of $30$ years. Comparable warehouses in the subject neighborhood sell for $$160$ per square foot if the property has a rail spur. Without a rail spur, the sales price for a comparable warehouse is $$140$ per squaref foot. The subject warehouse lacks a rail spur. Warehouses like the subject property rent for $$25,000$ per month, with a $5\%$ vacancy rate and a net income ratio of $40\%.$ Sales of comparable rentals indicate a capitalization rate of $8\mathrm{.}15\%$ for the subject. The assignment is to appraise the fee simple absolute estate of the subject property to establish asset value for a purchase. The effective date of the appraisal is the date of the appraiser s inspection of the property. The process used to arrive at the appraiser s final value conclusion is called

$$ reconciliation.

conciliation.

averaging.

lowest common mean.