Building Description

1. Building Description Wayne Foss, MBA, MAI Wayne Foss Appraisals, Inc. Email: wfoss@fossconsult.com

2. 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

3. 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

4. Use Classification General Classifications: • Residential • Commercial • Industrial • Agricultural • Special Purpose

5. 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

6. 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.

7. 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)

8. 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

9. 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

10. 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

11. 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.

12. 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

13. 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

14. 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

15. Building Types and Features Agricultural: • Machinery and equipment sheds • Barns • Animal shelters • Crop or feed storage • Irrigation systems

16. 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

17. 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

18. Physical Inspection Interior description • Miscellaneous equipment • Fire Protection • Elevators • Escalators • Signals, alarms and/or call systems • Unloading facilities • Attached equipment related to processes

19. 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

20. 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.

21. 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

22. 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

23. So That’sImprovement Description Are there any Questions? Wayne Foss, MBA, MAI, Fullerton, CA USA Phone: (714) 871-3585 Fax: (714) 871-8123 Email: wfoss@fossconsult.com