of media is the first harbinger of a Digital Dark Age.
"Additional expenditure will undoubtedly impact on the market, particularly for secondary stock where we are already seeing the effect of physical obsolescence
on pricing and marketability."
This analysis should include areas of physical obsolescence
like roof replacement, siding and carpets, as well as plumbing, HVAC and any mechanical systems.
The tax assessor may contend that it has already accounted for obsolescence, but taxing authorities usually only consider physical obsolescence
. When making the case for external obsolescence, a company cannot rely only on one measurement, such as units sold; the assessor will require more support.
Since detailed commercial property data became available in 1980, the retail sector has enjoyed a yield premium, reflecting the fact that the sector had far better rental value growth than offices or industrial, and, in the case of shops, the least physical obsolescence
and readily accessible lot sizes.
can be measured by an examination of maintenance policy and performance.
* Physical plant: Prisons in the federal capital are old and suffer from physical obsolescence
. They also suffer from damage produced during insurrections.
Physical Analysis: A review of the physical plant must be addressed such as functional, economic or physical obsolescence
, ADA compliance, amenities and competitiveness, deferred maintenance, health and safety issues.
When using the cost approach only, it is vital to incorporate only estimates of functional and physical obsolescence
at this time.
"Proactive Investors and landlords should be starting to identify which of their properties are at risk of falling secondary stock where we are already seeing the effect of physical obsolescence
on pricing and marketability." Government figures suggest that as much as 18 per cent of buildings with an Energy Performance Certificate fall into the bottom two categories, spread across all asset classes.
The fact that the ADA requires existing facilities to remove or re-construct non-compliant building elements such as: entrance doors, elevators, restroom facilities, parking lots and garages, and curb cuts for accessible routes, provides a good argument for physical obsolescence