Using the unit comparison method of the cost approach, you are asked to value a 100,000 SF industrial building. The land that the building is on is valued at $555,000. The reproduction cost of the building is estimated at $36.50/SF. The previous owner was lax in maintaining both the building and other site improvements, and as a result, physical deterioration is estimated at $130,000. Further, because the building is 40 years old, some areas of the building are not structurally strong enough to carry some of the heavier new machines. As a result of this functional obsolescence, the building should be devalued by $750,000. Finally, there is no evidence of economic obsolescence. 

What is the total value of the property using the cost approach?

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