Question $1$:

Complete a cost approach valuation using the following information:

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The subject is a $312,000$ SF warehouse building $(3\%$ of the total square footage has office build$-$out$)$ with a $780,000$ SF parking lot, all constructed on $28\mathrm{.}70$ acres of land.

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Land values in the area are $$2\mathrm{.}25/$SF of land.

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Hard costs $=$

$$ Warehouse building construction: $$43\mathrm{.}00/$SF for the entire building

$$ Interior office build$-$out: Additional $$48\mathrm{.}00/$SF of building for the square footage of the building with office build$-$out only

$$ Parking lot $=$ $$4\mathrm{.}25/$SF of parking lot

Soft costs $=7\%$

Entrepreneurial incentive $=12\%$

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Actual age: $13$ years

Effective age: $8$ years

Economic life: $45$ years

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Round your final value to the nearest $$10,000.$ Round all other answers to the nearest dollar.

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You must present the following:

$$ Hard costs for the building, in whole dollars

$$ Hard costs for the office build$-$out, in whole dollars

$$ Hard costs for the parking lot, in whole dollars

$$ Total hard costs, in whole dollars

$$ Soft costs, in whole dollars

$$ Entrepreneurial incentive, in whole dollars

$$ Replacement cost new, in whole dollars

$$ Replacement cost new, in $$/$SF of building

$\%$ of depreciation

$$ Depreciation, in whole dollars

$$ Land value, in whole dollars

$$ Land value, in $$/$acre

$$ Value from the cost approach, in whole dollars

$$ Value from the cost approach, in $$/$SF of building

Question $2$:

Complete a sales comparison approach using the following information and data:

$$ In your adjustment grid on the following page, round all adjustments to the nearest whole percentage $($e$.$g$.,$ round $10\mathrm{.}15\%$ to $10\%)$

$$ Include a $+$ or $$ to indicate the direction of each adjustment.

$$ Make the market conditions adjustment first and independent of all other adjustments.

$$ At the end, add together the location$/$physical adjustments because they are cumulative $($don$$t forget to consider the direction of adjustments$).$

$$ Not all items will require adjustment.

$$ Remember, comparables are adjusted to the subject, so a superior characteristic would be adjusted downward, and an inferior characteristic would be adjusted upward.

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Subject property: $312,000$ SF warehouse

Sales A$-$D are all warehouses.

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Market conditions adjustment

$$ Market conditions adjustments are applied before all the other adjustments, after which you should calculate a semi$-$adjusted $$/$SF before proceeding with the location$/$physical adjustments.

$$ From the beginning of Q$12021$ until the end of Q$22023,$ market conditions improved $4\%$ per quarter on a straight$-$line basis $($NOT compounding$)$ due to demand for warehouse space for e$-$commerce. From the end of Q$22023$ until the present $($beginning of Q$42024),$ market conditions have declined $3\%$ per quarter on a straight$-$line basis $($NOT compounding$)$ due to oversupply.

$$ All sales must be adjusted to reflect market conditions as of the beginning of Q$42024.$

$$ Make all adjustments from the beginning of the quarter when the comparable sold to the beginning of Q$42024.$

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Location adjustment

$$ Whitestown is considered to be $10\%$ superior to Indianapolis.

$$ Greenwood is considered to be $15\%$ inferior to Whitestown.

$$ Plainfield is considered to be $10\%$ inferior to Whitestown

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Size adjustment

$$ Buildings in this market require a $1\mathrm{.}50\%$ adjustment per $5,000$ SF of difference $($you can adjust for smaller and larger$/$partial differences$).$ Smaller buildings are considered superior, and larger buildings are considered inferior.

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Age$/$condition adjustment

$$ An adjustment for age is $2\mathrm{.}00\%$ per year of effective age difference. Older buildings are considered inferior, and newer buildings are considered superior.

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Remember the market conditions adjustment is performed prior to location$/$physical adjustments. Location$/$physical adjustments are added up and can net each other out.

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Last, present the indicated values for the subject, based on each comparable$$s adjusted $$/$SF and the subject building size, in whole dollars, rounded to the nearest $$10,000.$