functional obsolescence

functional obsolescence

A loss of value from all factors within a property except for physical deterioration.This may include a poor floor plan,the lack of a garage,high ceilings that dramatically increase heating costs, or the lack of central air conditioning in the South. Contrast with economic obsolescence (factors outside the property that depress its value) and physical obsolescence (deterioration).

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Lender's review appraiser concluded that both reports appeared to be "reasonable, complete, accurate and relevant," however both reports failed to consider functional obsolescence. The yard was built to highway standards because, Debtor said, he wanted the yard to withstand the possible wear and tear as a product of the heavy loads that would travel across the yard.
Gruelle opined that, absent Karverly's proposed modifications, buyers in the market for daycare properties would conclude that the new multi-use trail adjacent to the property created a "functional obsolescence," rendering the site an "inferior property" and subject to a $290,000 discount in the fair market value of the remainder before the take.
I completed the cost approach using the replacement cost of a Class S industrial building and deducted the cost to convert from functional obsolescence.
Rizal Center was also soon faced with real estate issue of functional obsolescence. The limited parking space and malfunctioning mechanicals caused organizations to hold their social affairs in hotels and commercial banquet halls.
Project need is to replace the aging bridge structures (#10590 and # 10600) built in 1963 due to functional obsolescence and width restrictions.
"As part of RFR's ongoing stewardship of this landmark building, we feel an obligation to undertake this important project to restore the luster the space possessed upon opening in 1958, which has succumbed to normal wear and tear and functional obsolescence noted the statement.
Transplant: By reviving two mid-century former dormitory buildings, the university could cure functional obsolescence within budget and give new life to the buildings.
HUD does not have arbitrary age limits on buildings but does consider the issue of functional obsolescence (for instance, a large number of four-bed wards) and estimated useful life.
"In considering new locations, users want to make the right decision about their move, and functional obsolescence is becoming harder to work around.
Caption: A poster child of functional obsolescence, running along U.S.
Obsolescence: It could occur due to two reasons and they are termed as 'Functional Obsolescence'and 'Economical Obsolescence'.

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