Building Description

Wayne Foss, MBA, MAI

Wayne Foss Appraisals, Inc.

Email: wfoss@fossconsult.com

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

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

Use Classification

General Classifications: Residential Commercial Industrial Agricultural Special Purpose

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

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.

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)

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

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

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

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.

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

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

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

Building Types and Features

Agricultural: Machinery and equipment sheds Barns

• Animal shelters• Crop or feed storage

Irrigation systems

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

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

Physical Inspection

Interior description• Miscellaneous equipment

• Fire Protection• Elevators• Escalators• Signals, alarms and/or call systems• Unloading facilities• Attached equipment related to processes

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

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.

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

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

So That’sImprovement Description

Wayne Foss, MBA, MAI, Fullerton, CA USAPhone: (714) 871-3585 Fax: (714) 871-8123 Email: wfoss@fossconsult.com