1 multipart xf8ff 5 fin353 building description week 4
DESCRIPTION
Multipart issueTRANSCRIPT
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Purpose of Building Description
Basis for: describing the Improvements determination of the Highest and Best Use of the
property the Cost Approach
• cost new and depreciation the Sales Comparison Approach the Income Approach
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Types of Information Needed
Materials of construction and quality Size of the Improvements Age, Condition Style, design, layout - functional utility
• all relates to market standards Positive and Negative features
• materials and/or design
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Use Classification
General Classifications: Residential Commercial Industrial Agricultural Special Purpose
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Building Measurement
Gross Building Area (GBA)• The total floor area of a building, including below-
grade space but excluding unenclosed areas, measured from the exterior of the walls.
Gross Living Area (GLA)• The total area of finished, above-grade residential
space, excluding unheated areas such as porches and balconies.
• The standard measure for determining the amount of space in residential properties
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Building Measurement
Gross Leasable Area (GLA)• The total floor area designed for the occupancy
and exclusive use of tenants, including basements and mezzanines, and measured from the center of interior partitioning to outside wall surfaces.
Net Leasable (Useable) Area (NLA)• The total area actually occupied by the tenant,
excluding common areas.
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Architecture
Style: The character of a building’s form and ornamentation.• Construction materials• Type of structure (frame)• Equipment (heating, plumbing, HVAC, etc)• Siting (solar, underground houses)• Design (colonial, ranch, contemporary)
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Functional Utility
The ability of a property or building to be useful and to perform the function for which it is intended according to current market tastes and standards.
General Standards: Comfort Efficiency Safety Security Accessibility Ease and Cost of Maintenance
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Building Types and Features
Residential: Housing Standards
• vary for different income levels and in different regions
Layout• traffic patterns, baths near/in bedrooms, etc.
Accommodation for specific activities• separate rooms for living, eating and sleeping
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Building Types and Features
Residential: Adequacy
• size, ceiling height, insulation, mechanical systems, number of bedrooms and baths
Ease and cost of maintenance• low-maintenance items, energy efficient
improvements
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Building Types and Features
Commercial: Physical
• column spacing, bay depth, ceiling height, elevators, HVAC adequacy
Energy efficiency Work letter
• part of a lease that specifies the level of interior finish and equipment that the landlord provides the tenant.
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Building Types and Features
Commercial: Public amenities in retail space
• ground, lobbies, restrooms, parking areas, escalators, and food facilities
Parking ratios• different types of retail uses require different amounts of
parking. Hotels
• fireproofing and soundproofing, security, support facilities
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Building Types and Features
Industrial: Flexibility of design
• permits multiple uses Land to Building Ratio
• high ratios allow for truck parking and/or turnaround, and expansion
Transportation Access Layout for efficient operation
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Building Types and Features
Storage buildings and warehouses: Access Open areas Ceiling Height Floor load capacity Humidity and temperature controls Shipping and receiving facilities Fire protection
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Building Types and Features
Agricultural: Machinery and equipment sheds Barns
• Animal shelters• Crop or feed storage
Irrigation systems
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Physical Inspection
Exterior description• Footings and Foundation• Floor structure• Framing
• Exterior walls• Windows• Doors
• Roof cover and drain systems• Chimneys, stacks and/or vents• Special features
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Physical Inspection
Interior description• Interior walls, ceiling and doors• Division of space (floor plan layout)• Painting, decorating and finishing• fireplaces• heating and air condition system• plumbing systems• kitchen equipment• special features
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Physical Inspection
Interior description• Miscellaneous equipment
• Fire Protection• Elevators• Escalators• Signals, alarms and/or call systems• Unloading facilities• Attached equipment related to processes
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Quality and Condition
Comparability of the property to sales found in the market area
Basis for estimates of cost new and depreciation
Basis of the property to produce rental income in the income capitalization approach
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Deferred Maintenance Items
Must point out deferred maintenance items or items that need immediate attention and repair.• Examples: painting, broken windows or torn
screens, loose gutters, cracked sidewalks. Short-lived items
• Have an expected remaining life that is shorter than the remaining physical life of the entire structure.
• Example: a roof cover with a physical age of 10 years and an expected life of 20 years.
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Other Improvements
Outbuildings• Garages (attached or detached)• Barns, stables, coops, and kennels• Sheds or storage buildings
Site Improvements• Swimming pools• patio covers or enclosures• fences, walls, landscaping• driveways, walkways and parking areas
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Improvement Analysis
Considers the ideal improvement or the building that would maximize the value in terms of:• Physical• Functional• External
Provides information for consideration of alternative uses for renovation, conversion or demolition
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So That’sImprovement Description
Wayne Foss, MBA, MAI, Fullerton, CA USAPhone: (714) 871-3585 Fax: (714) 871-8123 Email: [email protected]