Edgar Clodfelter APAS, LLC Chris Miele NEMRC 1. MicroSolve Commercial Workshop Aims to Give some Practical Understanding -Not a class on using MVS Commercial

Edgar ClodfelterAPAS, LLC

Chris MieleNEMRC

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MicroSolve Commercial

Workshop Aims to Give some Practical Understanding

-Not a class on using MVS Commercial system.

• Commercial System is a Black Box from M&S -Installation and setup is important

-Simple and easy to use -Keep it simple-Approach is similar to calculator

method

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System Overview

Marshall & Swift Commercial Estimator

•Relational database consisting of a series of tables linked by the Parcel ID.

•Allows a record to have as many components as needed.


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•Parcel Data come primarily from NEMRC System.

•Zip Code Determines Local Multiplier Used by M&S

•Neighborhood is used for Land Calculations


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•Land Calculations in Commercial same as Residential

•Site Improvements in Commercial same as Residential


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•Section Data describes the Building/Buildings area(s).

•There can be many uses or occupancies within a section.


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•Components describe the characteristics of the structure.


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•Additions allow for additional value for items not included in the Cost system.


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•Basement information allows for additional value on portions of the building below grade.


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•Final Values are stored in the Valuation section.


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•Multiple Pictures can be linked to each record.


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•Information about the property can be stored in the Notes section.


Records are moved into Commercial CAMA System by selecting Cama File C

R - Residential

C - CommercialO – CondominiumN - No Cama File

• Three separate databases

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Caution: Just because a property is classified or categorized as commercial does not mean it should be valued in the commercial system.

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Need to decide if building is really a commercial style. Houses converted to Offices Garages Low quality steel buildings

Are there considerations making a building suited to residential database? Outbuildings - garages, sheds Concerns about excessive value Need for greater control of value Multiple dwellings/buildings

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Three Approaches to Value 1. Cost Approach

• Indication of value that is the sum of estimated land value and estimated depreciated cost of the building and other improvements.

• V = LV + IV (CN – D)

2. Market Approach• Valuation procedure based on prices paid in actual

market transactions used to determine most probable sale price of property being appraised.

3. Income Approach • Converts anticipated benefits (dollars) to be derived

from ownership into a value estimate.

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Cost Approach and Value1.Replacement Cost

• Total cost of building construction required to:a. Replace the subject building.b. Substitute with like or equal utility.c. Using current standards of materials and design

2.Reproduction Cost• Total cost of building construction to replace with

actual replica of salient characteristics or components.

a. Newer buildings replacement approximates reproduction.b. Use segregated cost method for older buildingsc. Actual replacement may not be available or desirable.

3.Principle of Substitution• Economic principle that the price of a commodity

tends to be no higher than the price of a substitute having equal utility without undue delay.

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Cost Approach and Value

• Cost Approach1. Based on cost of production.2. Applicable for new or proposed construction.3. Applicable for unique or special purpose

properties.4. Represents the highest and best use of the site.

• Cost is an avenue to market value.

• The goal is not Cost, but Market

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Marshall and Swift Concepts

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Marshall and Swift Methods and Terms

1. Calculator Method – (Used with commercial estimator)

a. Based on concept of cost per increment of floor area.b. Areas or buildings are defined by a section or multiple

sections.c. Sections are defined by the use of the building, or

occupancy. Example – Restaurant, Health Club, Bank, Office, Service Station.

d. Within each occupancy are sqft refinements or components. Example – Exterior Wall, Heating/Cooling, Elevator, Mezzanine.

e. Buildings are classified by Occupancy, and grouped into Sections.

2. Segregated Method – (Not used with commercial estimator)

a. Computes total cost by successively adding the costs of all components of the building.

b. The method is specific and detailed.24


Section Information

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SECTION: BUILDING DATA

• Building Data consists of:

• Size and shape data, including the total floor area, number of stories and perimeter or shape.

• Age data, including effective age, base date and a special age adjustment value.

• Depreciation data.

• Occupancy data, including the building's occupancy (use), class of construction, story height and cost rank (quality).

The following factors are included:Total Floor Area (sq. ft.) *Stories per Section * Stories per Building Perimeter (linear feet)Shape * -Use either Perimeter or

Shape.Base Date – Base date of cost tables Building Adj. A dollar amount reflecting unusual conditions.

Fireproof A logical field: enter T or F.

Year Built Effective Age (years) * Use either YB or

Effective Age.Depreciation % Physical Functional Economic

* Required Field

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Section

• Single Section: Can be one building with one section.

Example:

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Section

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Section

• Section Exampleo One Building - One

Sectiono Small Satellite Bank

Building

• Simple Exampleo One Sectiono One Occupancy-Banko Two Additions

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Section• Section Example - 2

o One Building - Two Sections

o Office Building and Apartment

• Example Breakouto Two Sectionso Three Occupancies- Offices,

Apt.o Basement Finish

• Alternative Breakouto Three Sectionso Four Occupancies

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SectionSection Example - 3

o Two Buildings – Two Sections on same Property

o Manufacturing Building o Restaurant Building with

Retail and apartment.• More Complex Example

o Two Sections, Two Buildingso Section 1 - 2 Occupancies o Section 2 – 3 Occupancies

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Total Floor Area (Required)The total floor area of a section is the

total area on all floors based on the building's exterior dimensions.

Example: The entry for 24,525 square

feet is: Total Floor Area (sq. ft.)

24525

No Commas

Section Fields

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Number of Stories

Estimate with One Section: If estimate has only one section, enter its number of stories in “Number of Stories: Section” only.

Example: The entry for a building with 3 stories, entered as a single section, is:

Number of Stories: Section _3___ Building ____

Section Fields

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Vertically Sectioned Building: If you vertically section a building, enter the number of stories in each section under “Number of Stories: Section.”

Example: A building that is part 6 stories and part 3 stories can be vertically sectioned as follows:

The entries for this building are:

Section 1 Story/Section __6__ Building

____ Section 2: Story/Section __3__ Building

____

Section 16 Stories

Section 23 Stories

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Horizontally Section Buildings: If you horizontally section a building, enter the number of stories in each section under “Number of Stories: Section,” and the total number of stories in the building under “Number of Stories: Building.”

Example: A building that has a one-story bank on the first floor (20' story height), and five stories of offices on the second through sixth stories (10' story height), is sectioned horizontally as follows:

The entries for the Building are:

Section 1: Stories/Section __1__ Building

__6__ Section 2: Stories/ Section __5__Building

__6__

Section 25 Stories

Section 11 Story

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Perimeter: The total linear feet of wall that encloses the floor area (based on exterior dimensions).

If the perimeter varies in a multistory building, enter the average perimeter.

Can enter perimeter or shape.

It is best to enter the perimeter.

Example: If a 10-story building has a perimeter of 660 feet on the first floor and 500 feet on the other 9 floors, the average perimeter is:

Perimeter or Shape

feet 516=

Stories10

feet160,5

Stories10

stories9x feet 500story1xfeet 660

Shape: If you do not know the perimeter, you can enter one of the following shapes:

1=Square 2=Rectangular or Slightly Irregular

3=Irregular 4=Very Irregular

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Depreciation (determined by the system) is calculated based on age or effective age, rank, occupancy and class. There is no field for Condition.

This calculation does not include either abnormal or excessive functional depreciation, or any external obsolescence.

System documentation regarding base date and effective age has changed.

o Base date is now the base date of the cost tables in use.

Definitions

Depreciation is loss in value due to any cause. Depreciation is divided into three general categories, as discussed below.

1. Physical depreciation is loss in value due to physical deterioration.

Curable – Short lived items (Flooring, Paint)

Incurable – Long lived items, require major construction to replace (Foundations, Heating systems)

2. Functional obsolescence is loss in value due to lack of utility or desirability of part

or all of the property. - Many older buildings suffer from functional obsolescence.

- Lack of Elevators, Adequate Wiring

3. External, locational or economic obsolescence is loss in value due to causes outside the property and independent of it.

Depreciation

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Effective age of a property is its age as compared with other properties performing like functions.

It is the actual age less the age which has been taken off by updating the building through improvements or structural reconstruction, and removing functional inadequacies.

It is the age reflective of the true remaining life for the property, after consideration of the typical life expectancy of buildings of its class and its usage.

It is a matter of judgment, taking all factors, current and those anticipated, into consideration.

M&S Life Expectancy Tables

Depreciation

Occupancy Class A B C D S

Apartments 60

60 55 50 50

Home for Elderly

50

50 45 40 40

Market – Low Cost

-- -- 35 30 30

Warehouse -- -- 35 30 3038


Example Retail/Office Building

o Class C , Average Quality o Typical Life = 50 Years

Electrical System Replaced 10 Yrs. Ago Heating system replaced 5 Yrs. Ago Roof repaired 8 Yrs. Ago Interior renovations 10 Yrs. Ago. Estimated Remaining Life = 40 Yrs

Typical Building Life = 50 YearsEstimated Remaining = 40 YearsEffective Age = 10 Years

What other form of obsolescence is associated with this building?

Compare the two buildings Utility.

Depreciation

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Field Entered

Uses Lookup

Year Built Effective Age

Yes

Effective Age

Effective Age

Yes

Overall Depr

No Age No

Physical Depr

No Age No

Depreciation

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• If Year Built or Effective Age is used Depreciation is called “Physical & Functional”

• If Overall Depr. Is used Depreciation is called “Physical & Functional”

• If “Phys Depr.” is used Depreciation is called “Physical”

• If use “Physical” and “Functional” both are displayed.

ExamplesDepreciation

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Occupancy Information

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OCCUPANCY

•Occupancy, or building use : identifies the use or uses of the building as it was originally designed.

•For a building without an exact occupancy description choose the most similar type.

•If the designed use and the actual use differ, the design generally determines the cost used in calculating the basic replacement cost. Therefore, use the occupancy of the designed use to determine costs.

•Example – Curves (health clubs/exercise facility) are frequently located in converted retail space.

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OCCUPANCY

•Must enter at least one occupancy in each section of the building.

• Must enter the percentage of the total floor area for each occupancy. • Total percentage for all occupancies in the section must be 100%.

• Can enter as many occupancies in each section as you need.

Occ Code

Occ Name % Class

Height Rank

50 Retail Store

40 D 10 2

34 Laundromat

60 D 14 2

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Occupancy Type Select from the categorical list.

Occupancy Percent Total of all occupancies in a section must be 100%

Occupancy Class A, B, C, D, S

Occupancy Rank Quality rating: 1-4 with 1 being low and 4 being excellent. Graduated ranks (e.g. 3.5) are possible. A low extreme of 0.5 and a high extreme of 5.0 are permitted.

Occupancy Story Ht In feet.

Occupancy-related factors: (all required):

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Code Name Val Code Name Val0NoData 0 51ArtCrftsBl 3551Apartment 300 52ClassrmsEl 3562Armory 301 53CommonsEle 3573Auditorium 302 54GymEleSecS 3584AutoShowRm 303 55LectClssrm 3595Bank 304 56MediaCntrE 3606Barn 305 57ManualArts 3617BowlingAll 306 58MultipurpB 3628ChurchWSun 308 59PhysEdBldg 3639Church 309 60SciClassrm 364

10CityClub 310 61EleSchoolE 36511Clubhouse 311 62JrHghSchoo 36612Convalesce 313 63ArtsCrftsB 36713CountryClu 314 64ClassrmsCo 36814Creamery 315 65CommonsCol 36915Dairy 316 66GymCollege 37016DairySales 317 67LectHallCo 37117DeptStore 318 68LibrryColl 37218DiscountSt 319 69TechTradeB 37319Dispensary 320 70MultipurpB 37420Dormitory 321 71PhysEdBldg 37521FireStnSta 322 72SciBldgCol 37622FratBldg 323 73CollegeEnt 37723FratHse 324 74Stable 37824ServGrgObs 325 75TheatersLi 37925StorGarage 326 76TheatersCi 38026GovBldg 327 77VetrnryHos 38127StorHangar 328 78TobaccoBar 38328HangarMain 329 79BarberShop 38429HomeForThe 330 80MiniWareho 38630Hospital 331 81TransWareh 38731Hotel 332 82UndrgrndPa 38832 IndManufac 334 83EquipStorB 38933CorrFacili 335 84LumberStor 39034Laundromat 336 85MaterlStor 391

Occupancy Codes in MicroSolve and M&SMore than 150

CAMA Name M&S Code

CAMA Name M&S Code

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Occ Code

Occ Name % Class

Height Rank

50 Retail Store

40 D 10 2

34 Laundromat

60 D 14 2

%

Occupancy Percent

Example:

Total of all occupancies in a section must be 100%

Total SQFT = 7,000

Retail = 4,200

Laundromat = 2,800

Laundromat Percent = 2,800/7,000 = .40 or 40%

Retail = 100 – 40 = 60%

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Occ Code

Occ Name % Class

Height Rank

50 Retail Store

40 D 10 2

34 Laundromat

60 D 14 2

Class

• Class of ConstructionoDivides buildings into basic cost groups by type of framing (supporting columns and beams), walls, floor and roof structuresand fireproofing.

•A - Fireproof Structural Steel Frame•B - Reinforced Concrete Frame•C – Masonry Bearing Walls•D - Wood or Steel Stud Framed Exterior Walls•S - Metal Frame Walls

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CLASS A: FIREPROOF STRUCTURAL STEEL FRAME• Fireproofed structural steel frame, which may be welded, bolted or riveted together.

• The fireproofing may be masonry, poured concrete, plaster, sprayed fiber or any other method, which gives a high fire-resistance rating.

• Floor and roof are normally reinforced concrete on steel decking or formed slabs resting on the frame or poured to become integral with it.

• Exterior walls are curtain walls of masonry, concrete, steel studs and stucco, or one of the many types of panels of metal, glass, masonry or concrete.

• Interior partitions frequently are of masonry or gypsum block, although many movable and lightweight steel partitions are used.

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CLASS B: REINFORCED CONCRETE FRAME• Reinforced concrete frame in which the columns and beams can be either formed or precast concrete.

• Class B buildings are fire-resistant structures.

• Floors and roofs are formed or precast concrete slabs.

• Exterior walls are masonry or reinforced concrete curtain walls or any of the many types of wall panels of concrete, metal, glass or stone. In some class B buildings the walls may be partially load bearing.

• Interior partitions are often masonry, reinforced concrete or gypsum block. Many lightweight and movable partitions are used where structural walls are not needed.

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CLASS C: MASONRY BEARING WALLS

• Masonry or reinforced concrete construction.

• The walls may be load-bearing, i.e., supporting roof and upper floor loads, or nonbearing with concrete, steel or wood columns, bents or arches supporting the load.

• Wood or steel joists or trusses support upper floors and roofs. Ground floors may be concrete slabs. Upper floors may be of concrete plank, steel deck or wood. Bearing walls are frequently strengthened by concrete bond beams and pilasters.

• Class C buildings are not fire-resistant structures.

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CLASS D: WOOD- OR STEEL-FRAMED EXTERIOR WALLS

•Class D buildings are characterized by combustible construction.

•Exterior walls may be made up of closely spaced wood or steel studs as in the case of a typical frame house.

•Exterior walls may be wood siding, shingles, stucco, brick or stone veneer or some other type of material. •Floors and roofs are supported on wood or steel joists or trusses.

•The floor may be a concrete slab on the ground.

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CLASS S: METAL FRAME AND WALLS• Incombustible construction and prefabricated structural members.

• They are not fire-resistant buildings.

• Exterior walls may be steel studs or an open-steel-skeleton frame with exterior coverings of prefabricated panels or sheet siding.

• Upper floors and roof are supported on steel joists or beams.

• Ground floors are typically concrete slabs.

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Occ Code

Occ Name % Class

Height Rank

50 Retail Store

40 D 10 2

34 Laundromat

60 D 14 2

Height

Story Height

• Story height is the vertical distance from the top of one floor to the top of the next floor.

• In a one-story building, measure story height from the floor surface to the roof eave. (Do not include parapets (extensions of the wall above the roofline) in story height.)

•Must enter a story height for each occupancy. (Different from manual)

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When using a single section, if the story heights vary in a multistory building, you can do any of

the following:

Example 1: One section – Two Occupancies – Different Heights

Story Height Examples

Occ Code

Occ Name % Class

Height Rank

44 Post Office 33 D 18 2

5 Bank 67 D 10 2

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Story Height Examples - Averaging

Average Story Height18 feet 2 x 10 feet

3Stories

38 feet

3Stories12.67 feet=

+= =

Occ Code

Occ Name % Class

Height Rank

5 Bank 100

D 12.67

2

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•Example 3: One section – One Occupancy – Different Heights

•For unfinished attics, include half of the increased height of the attic area when computing average story height.

Two Story Building – 10 Foot each Floor - 8 Foot Attic Area

Story Height Examples

Foot 12 2feet / 242

Feet 8+feet 10 +feet 10

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Rank

Occ Code

Occ Name % Class

Height Rank

50 Retail Store

40 D 10 2

34 Laundromat

60 D 14 1.5

Rank

Rank refers to Quality .

The quality scales against which most buildings and their parts must be rated are:

Rank 1 - LOW COST

Rank 2 – AVERAGE

Rank 3 – GOOD

Rank 4 – EXCELLENT

Split grades are allowed

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Rank

Low (Rank 1) - These tend to be very plain buildings that conform to minimum building code requirements. Interiors are plain with little attention given to detail or finish. Typically, there are minimum mechanical and low-cost finishes throughout.

Average (Rank 2) - These buildings are the most commonly found and meet building code requirements. There is some ornamentation on the exterior with interiors having some trim items. Lighting and plumbing are adequate to service the occupants of the building.

Good (Rank 3) - These are generally well designed buildings. Exterior walls usually have a mix of ornamental finishes. Interior walls are nicely finished and there are good quality floor covers. Lighting and plumbing include better quality fixtures.

Excellent (Rank 4) - Usually, these buildings are specially designed, have high-cost materials and exhibit excellent workmanship. Both exteriors and interiors have custom and ornamental features. Lighting and plumbing include high-cost fixtures.

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Examples Using MVS Commercial Examples Using MVS Commercial Manual

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Components

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Components

•Building components include exterior walls, heating and cooling, elevators, sprinkler systems, fire alarms, mezzanines, balconies.

• In Marshall & Swift tables, many types of buildings (or occupancies) are assumed to have such components, and their cost is already included in the square foot rate.

•It is not necessary to enter components unless greater control, accuracy, or description is necessary.

•However, it is a good idea to break down components:•Demonstrates a proper inspection was completed.•Gives greater control for complex buildings.•Underlying assumptions knowledge is limited.

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Wall Type Select from the categorical list. Wall Percent Percentages must total 100. Wall Units Enter area in square feet. Wall Rank Range is from a low of 1 to a high of 4. Wall Units of Measure Choose Square Feet. Wall Other Units Leave blank. Wall Depreciation Enter a percentage if desired.

Heat/Cool Type Select from the categorical list. Heat/Cool Percent Percentages must total 100. Heat/Cool Units Enter area in square feet. Heat/Cool Rank Range is from a low of 1 to a high of 4. Heat/Cool UOM Choose Square Feet. Heat/Cool Other

UnitsLeave blank.

Heat/Cool Depreciation

Enter a percentage if desired.

Component Type Select from the categorical list. See details in Part 2. Component Percent Percentages must total 100. Component Units Enter area in square feet or count. Component Rank Range is from a low of 1 to a high of 4. Component UOM Choose Square Feet or Units (i.e. count). Component Other

UnitsSee details in Part 2.

Component Deprec Enter a percentage if desired.

Components

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Components – Wall Type

1 2

Type: Brick 1-Solid 3-Brick w/ Block Back Block: 8-Concrete 12- Textured 17 – Glass Concrete: 18-Formed 20- Precast Stone: 23- Rubble Veneer Pre-Engineered: 43- Metal Sandwich Panel Stud Walls: 56-Wood 57- Plywood 58-Hardboard 60- Metal 61-Vinyl 62-Shingles 65-Stucco 67-Brick Veneer 68- Block Veneer 72- Stresskin Panel Single Wall 73-Rustic Log 74-Metal on Wood 75-Metal SteelGrade (Rank): 1-Low 2- Average 3- Good 4- ExcellentUnits of Measure: 1- Square Feet 2- Units Units: Square Feet or Number

Components: ExteriorWall Type Percent Units Grade UOM Depreciation

Wall Type Select from the categorical list. Wall Percent Percentages must total 100. Wall Units Enter area in square feet. Not needed for Wall Type Wall Rank Range is from a low of 1 to a high of 4. Wall Units of Measure Choose Square Feet. Wall Other Units Leave blank. Wall Depreciation Enter a percentage if desired.

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CURTAIN WALLS – CAMA Pre-Code CW (M&S Codes 840-855)These are non-bearing exterior walls supported by the structural frame of the building. These walls carry

no load other than their own weight. The primary function of these walls is to protect the interior of the building from the weather.

Wall Definitions Descriptions for exterior walls: (See back section of manual)

MASONRY WALLS – CAMA Pre-Code MN (M&S Codes 801-826)These walls are constructed entirely of masonry units (or concrete) which are bonded together with

mortar or some other type of cementing material.

PRE‑ENGINEERED WALLS – CAMA Pre-Code PE (M&S Codes 860-872)These walls are pre‑fabricated panels constructed with two sheets or “skins” (interior and exterior) bonded to a core material.

STUD WALLS – CAMA Pre-Code SW (M&S Codes 880-891)These walls are of wood or steel stud bearing wall construction.

SINGLE WALL CONSTRUCTION – CAMA Pre-Code SN (M&S Codes 910-929)Refers to a wall enclosure that is typically applied over an open skeleton prefabricated metal or wood pole framed building.

- When stresskin sandwich panel replaces the stud framing, use additive component Number 891.

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Components - Heating/Cooling

1

2 Type: 1-Electric 2-Elec. Wall 3-Forced Air 4-Hot Water 5-Hot Water Rad. 6-Space Heat 7-Steam 8-Steam No Boiler 9-Ventilation 10-Wall Furnace 11-Package Unit 12-Warm Cool Air 13-Hot Chill Water 14-Heat Pump 15-Floor Furnace 16-Ind Thru Wall 17-Complete HVAC 18- EvapCool 19-Refrig Cool 20- No HVAC

Heating/Cooling Type Percent Units Grade UOM Depreciation

Heat/Cool Type Select from the categorical list. Heat/Cool Percent Percentages must total 100.* Heat/Cool Units Enter area in square feet.* Heat/Cool Rank Range is from a low of 1 to a high of 4. Heat/Cool UOM Choose Square Feet. Heat/Cool Other Units Leave blank. Heat/Cool Depreciation Enter a percentage if desired.

*Enter Units in SQFT OR Percent of Heating Area

•The commercial manual has a good description of each type.

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ComponentType Percent Units Grade UOM Depreciation

1

2

3

4 Type: 1-Elevator by Area 2-Passenger Elevator 3-Freight Elevator 5-Sprinklers 6-Dry Sprinklers 7- Wet Sprinklers 8-Mezzanine 9-Display Mezzanine 10-Office Mezzanine 11-Open Mezzanine 12- Storage Mezzanine 13-Malls Open 14-Malls Covered 15-Malls Enclosed 16-Malls Elevator 17-Balcony 18-Fire Alarm

Component Type Select from the categorical list. See details in Part 2. Component Percent Percentages must total 100. Component Units Enter area in square feet or count. Component Rank Range is from a low of 1 to a high of 4. Component UOM Choose Square Feet or Units (i.e. count). Component Other

UnitsSee details in Part 2.

Component Deprec Enter a percentage if desired.

Components - Other

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Component Type Units %HVAC Square feet of floor area

servedPercentage of total floor area served

Exterior Walls N/A Percentage of total wall area

Elevators (Square Foot Method)

Square feet of floor area served

Percentage of total floor area served

Elevators (Count Method)

Number of elevators N/A

Sprinklers Square feet of floor area served

Percentage of total floor area served

Mezzanines Square feet of mezzanine area

N/A

Balconies Square feet of balcony area

N/A

Malls Square feet of mall area N/AFire Alarm Systems Square feet of floor area

servedPercentage of total floor area served

Land Value (Site Value)

Dollar amount N/A

Site Improvements Dollar amount N/A

Components – Summary Chart

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Additions


Additions allow the inclusion of items to the report that are not available in the M&S CAMA program.

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Additions

Basic Basic Structure Cost - DepreciatedSuper Superstructure Cost - DepreciatedBsmnt Basement CostExtra ExtrasDepr Depreciation (prints as negative)Tot Bldg Total Value Added to Building – Not Depreciated

Report Headings indicates where to print the addition in the report, using one of the following codes:

Examples:•Porches or Decks•Tanks•Canopy•Storage Buildings

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72


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Basement :•Basement information parallels that in the Section, Occupancy, and Components for the building as a whole.

• Basements frequently have separate uses and occupancies.

•Basement section allows for specifying specific uses.

1

2

Basement: Basement Levels:______________________ Basement Perimeter: ______________________ Basement Shape: ______________________ 1-Appx Sq 2- Sl Irr 3- Irregular 4- Very Irregular

Basement Occupancy Class Type Area Depth Grade Depreciation

Occupancy: See Codes Class: A,B,C,D,S Type: 1-Finished 2- Semi Finished 3-Unfinished 4-Display 5-Office 6-Parking 7-Residential

1

2

BasementComponent Type Units Grade UOM Depreciation


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Basement Levels Enter number of levels. Basement Perimeter Basement Shape R One or the other is required if levels are specified. Basement Occupancy R Types are the same as for sections.

Bsmt Occ Class R Class – A, B, C, D, or S – need not be the same as section class, though usually it is.

Bsmt Occ Type R Options are: Finished, Resident Units, Parking, Semifinished, Display, Laboratory, Unfinished, Storage, Classroom

Bsmt Occ Area R In square feet. Bsmt Occ Depth R In feet – parallel to story height. Bsmt Occ Rank R Quality rating: 1-4 with 1 being low and 4 being

excellent. Graduated ranks (e.g. 3.5) are possible. A low extreme of 0.5 and a high extreme of 5.0 are permitted.

Bsmt Occ Deprec. Depreciation is not required. Bsmt Component

TypeOptions as in above-ground section components; heat/cool is not available as an option.

Bsmt Comp Percent Percentages must total 100. Bsmt Comp Units Enter square feet. Bsmt Comp Rank Quality rating: 1-4 with 1 being low and 4 being

excellent. Graduated ranks (e.g. 3.5) are possible. A low extreme of 0.5 and a high extreme of 5.0 are permitted.

Bsmt Comp Other UOM

Choose Square Feet or Units (i.e. count).

Bsmt Comp Other Units

See details in Part 2.

Bsmt Comp Deprec. Enter a percentage.

Basement


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Basement – Cost Report


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Examples


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Example -1 04-242-04Retail/Apartments - 3 Story Brick Building1 Section – 2 Occupancies – Unfinished Basement10,557 SQFT

Examples


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Example -2 04-242-05Light Manufacturing - 1 Story Metal Building with Office1 Section – 2 Occupancies -with Components and Additions16,637 SQFT

Examples


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Example -3 04-242-06Motel - 1 Story Wood Structure1 Section - 2 Occupancies3,200 SQFT

Examples


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Example -4 04-242-07New Office Building - 2 Story Brick Building1 Section – 1 Occupancy – Elevator and Sprinklers52,824 SQFT

Examples


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Example -5 04-242-08Fitness Center - 1 Story Precast Panels1 Section – 2 Occupancies – Finished Basement Area25,154 SQFT

Examples


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Example -6 04-242-09Warehouse Building with Office - 1 Story 1 Section – 1 Occupancy – Runs Income System18,512 SQFT

Examples


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Example -7 04-242-10Manufacturing Plant - 3 Buildings3 Sections – 4 Occupancies 63,256 SQFT

Examples


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Example -8 04-242-11Lumber Yard - 2 Main Buildings with 7 Lumber Sheds3 Sections - 11 Occupancies - 56,642 SQFT

Examples


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Example -9 04-242-12Marriott Hotel - 1 House1 Sections – 1 Occupancy – 3 Additions 51-191 SQFT

Examples


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20 ‘ Height – Service Repair Garage

10 ‘ Height – Office

16 ‘ Height – Equip. Shed

Office SQFT = 2,250 – 26%Full Basement Partial FNAGarage SQFT = 6,300 – 74%Total SQFT = 8,550Class S - Stud Metal SidingEFF Age – 30Porch Addition = 200 Sqft

Equip Bldg SQFT 2 = 3,200 Class D - Stud Wood SidingEFF Age - 20

Record to Enter – 04-242-13 and 14


Calculation Errors

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•Commercial CAMA system produces Calculation Errors for missing data that is required for completion of cost calculation.

•The key is to be organized in your layout of the record, especially if multiple sections, occupancies , and components are involved.

Calculation Errors


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Calculation Error Sample -1

The Most Common One


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Land Cost System Error – Missing NBHD Code


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Income Approach


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•Income producing properties should be valued using the income approach to substantiate value.

•Use the commercial cost approach to approximate the income approach value.

•Income approach does not have to be elaborate. Must be able to “talk the talk.”

•Example of industrial plant in Ludlow.

Income Approach


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Apartment SalesTown Owner SaleDate SalePrice Units $/Unit SQFT $/SQFTMiddlebury Stone City 10/25/2004 410000 8 51250 5112 80Middlebury Scout Property 3/1/2005 260000 7 37143 4788 54Vergennes LewisburgLLC 4-Oct 212500 4 53125 3554 60Vergennes Perron 5-Jan 227000 4 56750 3230 70

IndustrialTown SaleDate SalePrice Acres SQFT Type $/Sqft

Bennington Listing $995,000 7.84 28875 Industrial $34.45Swanton Listing $2,250,000 13.69 85000 Industrial $26.47Essex Jct Listing $2,950,000 18.32 77280 Industrial $38.17Morrisonville 10/6/04 $425,000 4.10 32064 Industrial $13.00Middlebury 3/6/30 $725,275 4.65 11580 Comm/Indust $62.63Middlebury 11/21/03 $555,000 4.28 8320 Industrial/Light $66.00

Small Industrial (Less than 25,000) $60/SqftLarge Industrial $30 - 50/Sqft

Rents $3.50 / Sqft

Income Approach


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Retail SalesTown SaleDate SalePrice Acres SQFT Type $/SQFTMiddlebury 10/4/04 $217,500 0.16 1896 Retail $114.00Middlebury 12/17/04 $415,000 0.04 4400 Retail $94.00Bristol 12/1/04 $180,000 1.17 5547 Retail $32.00Barre City 6/17/02 $275,000 0.48 6000 Retail $45.00Middlebury 5/15/01 $340,000 0.49 7422 Retail $45.80Rutland City 11/3/03 $675,000 Unknown 10000 Retail $67.50Middlebury 6/9/99 $604,000 0.15 10728 Retail/Apt $56.00

Middlebury 4/14/05 $618,300 4.15 10182 Lumber/Retail $60.72

Middlebury 4/14/05 $281,700 0.70 4938 Lumber/Warehse $57.00Vergennes 11/3/04 $207,000 0.03 2316 2 Apt/Retail $90.00Vergennes $215,000 0.07 6471 2 Apt/2Retail $56.00

Typical Value Approximately $50/Square FootTypical Value DownTown Approximately $100/Square Foot

Core Rents $15 First Floor$12 Upper Floor$6 Below Grade

Outlying Rents $12 First Floor$10 Upper Floor

25 Percent Expenses10 Percent Overall Cap Rate

Income Approach


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PROPERTY IDENTIFICATION

PARCEL ID JO00490022

NAME Leader Evaporator

PROP. DESC. Wharehouse Sale Price 1,600,000 10/2005

NEIGHBORHOOD 2

LAND - COST $ 283,900 RESIDUAL LAND: $ -

BLDG - COST $ 1,588,259

VALUE-COST $ 1,882,200 OR /SF

VALUE-INCOME $ 1,898,780 OR /SF

FINAL VALUE $ 1,882,200 OR /SF

VALUE/UNIT:

INCOME/EXPENSE INFORMATION

NET LEASABLE 78,172 SF

UNIT OF UNITS OR ECONOMIC ECONOMIC

USE COMPARISON SIZE/SF RENT/UNIT RENT

ROOMS $/RENT/DAY - $ -

EFFICIENCY UNITS $/RENT/MO. - $ -

1-BEDROOM UNITS $/RENT/MO. - $ -



Manufacturing $/SF/YR. 78,172 $ 3.75 $ 293,145

$/SF/YR. $ -

$/SF/YR. $ -

$/SF/YR. $ -

$/SF/YR. $ -

$/SF/YR. $ -

0 $/SF/YR. - $ -

0 $/SF/YR. - $ -

0 $/SF/YR. - $ -

0 $/SF/YR. - $ -

TOTAL SF 78,172 TOTAL INCOME $ 293,145

TOTAL UNITS -

VAC. & CR. LOSS 5.0%

EXPENSE % 25.0%

CAP. RATE 11.00%

TAX LOAD

INCOME APPROACH VALUE INDICATIONS

INCOME APPROACH SUMMARY - ECONOMIC RENT

GROSS INCOME $ 293,145 100.0%

VAC. & CR. LOSS $ 14,657 5.0%

EFF. GROSS INCOME $ 278,488 95.0%

EXPENSES (TOTAL) $ 69,622 25.0%

NET INCOME $ 208,866 75.0%

OAR CAP 11.0% RESIDUAL. LAND: $ -

VALUE INDICATION $ 1,898,780 INDICATED VALUE: $ 1,898,780

Income Approach


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Income Approach


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Conclusions and Summary


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Documents

Edgar Clodfelter APAS, LLC Chris Miele NEMRC 1. MicroSolve Commercial Workshop Aims to Give some Practical Understanding -Not a class on using MVS Commercial