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

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

1 Edgar Clodfelter APAS, LLC Chris Miele NEMRC 1

2 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 2

3 MicroSolve Commercial 3 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.

4 MicroSolve Commercial 4 Parcel Data come primarily from NEMRC System. Zip Code Determines Local Multiplier Used by M&S Neighborhood is used for Land Calculations

5 MicroSolve Commercial 5 Land Calculations in Commercial same as Residential Site Improvements in Commercial same as Residential

6 MicroSolve Commercial 6 Section Data describes the Building/Buildings area(s). There can be many uses or occupancies within a section.

7 MicroSolve Commercial 7 Components describe the characteristics of the structure.

8 MicroSolve Commercial 8 Additions allow for additional value for items not included in the Cost system.

9 MicroSolve Commercial 9 Basement information allows for additional value on portions of the building below grade.

10 MicroSolve Commercial 10 Final Values are stored in the Valuation section.

11 MicroSolve Commercial 11 Multiple Pictures can be linked to each record.

12 MicroSolve Commercial 12 Information about the property can be stored in the Notes section.

13 MicroSolve Commercial Records are moved into Commercial CAMA System by selecting Cama File C R - Residential C - Commercial O – Condominium N - No Cama File Three separate databases 13

14 MicroSolve Commercial Caution: Just because a property is classified or categorized as commercial does not mean it should be valued in the commercial system. 14

15 MicroSolve Commercial 15

16 MicroSolve Commercial 16

17 MicroSolve Commercial 17

18 MicroSolve Commercial 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 18

19 MicroSolve Commercial 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. 19

20 MicroSolve Commercial Cost Approach and Value 1. 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 buildings c. 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. 20

21 MicroSolve Commercial Cost Approach and Value Marshall and Swift Cost Approach is based on end costs of buildings to the buyer or owner. Costs are averages of detailed estimates of actual costs breakdowns and total end costs of actual construction projects. – Completed from surveys of construction jobs. Elements of cost include: a. Direct Costs (labor, materials, equipment, fees and charges) b. Indirect Costs (overhead, permits, financing, selling expenses) c. Profit. 21

22 MicroSolve Commercial Cost Approach and Value Cost Approach 1. 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 22

23 Marshall and Swift Concepts 23

24 MicroSolve Commercial 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

25 MicroSolve Commercial Section Information 25

26 MicroSolve Commercial 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 26

27 MicroSolve Commercial Section Single Section: Can be one building with one section. Example: 27

28 MicroSolve Commercial Section 28

29 MicroSolve Commercial Section Section Example o One Building - One Section o Small Satellite Bank Building Simple Example o One Section o One Occupancy-Bank o Two Additions 29

30 MicroSolve Commercial Section Section Example - 2 o One Building - Two Sections o Office Building and Apartment Example Breakout o Two Sections o Three Occupancies- Offices, Apt. o Basement Finish Alternative Breakout o Three Sections o Four Occupancies 30

31 MicroSolve Commercial Section Section 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 Buildings o Section 1 - 2 Occupancies o Section 2 – 3 Occupancies 31

32 MicroSolve Commercial 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 32

33 MicroSolve Commercial 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 33

34 MicroSolve Commercial 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 ____ 34

35 MicroSolve Commercial 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__ 35

36 MicroSolve Commercial 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 Shape: If you do not know the perimeter, you can enter one of the following shapes: 1=Square2=Rectangular or Slightly Irregular 3=Irregular4=Very Irregular 36

37 MicroSolve Commercial 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 37

38 MicroSolve Commercial 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 OccupancyClass A B C D S Apartments 60 55 50 Home for Elderly 50 45 40 Market – Low Cost -- 35 30 Warehouse -- 35 30 38

39 MicroSolve Commercial 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 Years Estimated Remaining = 40 Years Effective Age = 10 Years What other form of obsolescence is associated with this building? Compare the two buildings Utility. Depreciation 39

40 MicroSolve Commercial Field Entered UsesLookup Year BuiltEffective Age Yes Effective Age Yes Overall Depr No Age No Physical Depr No Age No Depreciation 40

41 MicroSolve Commercial 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. Examples Depreciation 41

42 MicroSolve Commercial Occupancy Information 42

43 MicroSolve Commercial 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. 43

44 MicroSolve Commercial 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 % ClassHeightRank 50Retail Store40 D 10 2 34Laundromat60 D 14 2 44

45 MicroSolve Commercial 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): 45

46 MicroSolve Commercial CodeNameValCodeNameVal 0NoData051ArtCrftsBl355 1Apartment30052ClassrmsEl356 2Armory30153CommonsEle357 3Auditorium30254GymEleSecS358 4AutoShowRm30355LectClssrm359 5Bank30456MediaCntrE360 6Barn30557ManualArts361 7BowlingAll30658MultipurpB362 8ChurchWSun30859PhysEdBldg363 9Church30960SciClassrm364 10CityClub31061EleSchoolE365 11Clubhouse31162JrHghSchoo366 12Convalesce31363ArtsCrftsB367 13CountryClu31464ClassrmsCo368 14Creamery31565CommonsCol369 15Dairy31666GymCollege370 16DairySales31767LectHallCo371 17DeptStore31868LibrryColl372 18DiscountSt31969TechTradeB373 19Dispensary32070MultipurpB374 20Dormitory32171PhysEdBldg375 21FireStnSta32272SciBldgCol376 22FratBldg32373CollegeEnt377 23FratHse32474Stable378 24ServGrgObs32575TheatersLi379 25StorGarage32676TheatersCi380 26GovBldg32777VetrnryHos381 27StorHangar32878TobaccoBar383 28HangarMain32979BarberShop384 29HomeForThe33080MiniWareho386 30Hospital33181TransWareh387 31Hotel33282UndrgrndPa388 32IndManufac33483EquipStorB389 33CorrFacili33584LumberStor390 34Laundromat33685MaterlStor391 Occupancy Codes in MicroSolve and M&S More than 150 CAMANameM&S Code CAMAName M&S Code 46

47 MicroSolve Commercial Occ Code Occ Name % ClassHeightRank 50Retail Store40 D 10 2 34Laundromat60 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% 47

48 MicroSolve Commercial Occ Code Occ Name % ClassHeightRank 50Retail Store40 D 10 2 34Laundromat60 D 14 2 Class Class of Construction o Divides buildings into basic cost groups by type of framing (supporting columns and beams), walls, floor and roof structures and 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 48

49 MicroSolve Commercial 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. 49

50 MicroSolve Commercial 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. 50

51 MicroSolve Commercial 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. 51

52 MicroSolve Commercial 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. 52

53 MicroSolve Commercial 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. 53

54 MicroSolve Commercial Occ Code Occ Name % ClassHeightRank 50Retail Store40 D 10 2 34Laundromat60 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) 54

55 MicroSolve Commercial 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 % ClassHeightRank 44Post Office33 D 18 2 5Bank67 D 10 2 55

56 MicroSolve Commercial Story Height Examples - Averaging Example 2: One section – One Occupancy – Different Heights Three Story Building – 1 st Floor 18 Foot - 2 nd 3 rd Floors 10 Foot Each Occ Code Occ Name % ClassHeightRank 5Bank100 D 12.67 2 56

57 MicroSolve Commercial 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 57

58 MicroSolve Commercial Rank Occ Code Occ Name % ClassHeightRank 50Retail Store40 D 10 2 34Laundromat60 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 58

59 MicroSolve Commercial 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. 59

60 MicroSolve Commercial Examples Using MVS Commercial Examples Using MVS Commercial Manual 60

61 MicroSolve Commercial Components 61

62 MicroSolve Commercial 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. 62

63 MicroSolve Commercial 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 Units Leave 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 Units See details in Part 2. Component Deprec Enter a percentage if desired. Components 63

64 MicroSolve Commercial 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 Steel Grade (Rank): 1-Low 2- Average 3- Good 4- Excellent Units 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. 64

65 MicroSolve Commercial 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. 65

66 MicroSolve Commercial 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. 66

67 MicroSolve Commercial 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 Units See details in Part 2. Component Deprec Enter a percentage if desired. Components - Other 67

68 MicroSolve Commercial Component TypeUnits% HVACSquare feet of floor area served Percentage of total floor area served Exterior WallsN/APercentage 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 elevatorsN/A SprinklersSquare feet of floor area served Percentage of total floor area served MezzaninesSquare feet of mezzanine area N/A BalconiesSquare feet of balcony area N/A MallsSquare feet of mall areaN/A Fire Alarm SystemsSquare feet of floor area served Percentage of total floor area served Land Value (Site Value) Dollar amountN/A Site ImprovementsDollar amountN/A Components – Summary Chart 68

69 Additions MicroSolve Commercial Additions allow the inclusion of items to the report that are not available in the M&S CAMA program. 69

70 MicroSolve Commercial Additions BasicBasic Structure Cost - Depreciated SuperSuperstructure Cost - Depreciated BsmntBasement Cost ExtraExtras DeprDepreciation (prints as negative) Tot BldgTotal 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 70

71 MicroSolve Commercial 71

72 MicroSolve Commercial 72

73 MicroSolve Commercial 73 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

74 MicroSolve Commercial 74 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 Type Options 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

75 MicroSolve Commercial 75 Basement – Cost Report

76 MicroSolve Commercial 76 Examples

77 MicroSolve Commercial 77 Example -104-242-04 Retail/Apartments - 3 Story Brick Building 1 Section – 2 Occupancies – Unfinished Basement 10,557 SQFT Examples

78 MicroSolve Commercial 78 Example -204-242-05 Light Manufacturing - 1 Story Metal Building with Office 1 Section – 2 Occupancies -with Components and Additions 16,637 SQFT Examples

79 MicroSolve Commercial 79 Example -304-242-06 Motel - 1 Story Wood Structure 1 Section - 2 Occupancies 3,200 SQFT Examples

80 MicroSolve Commercial 80 Example -404-242-07 New Office Building - 2 Story Brick Building 1 Section – 1 Occupancy – Elevator and Sprinklers 52,824 SQFT Examples

81 MicroSolve Commercial 81 Example -504-242-08 Fitness Center - 1 Story Precast Panels 1 Section – 2 Occupancies – Finished Basement Area 25,154 SQFT Examples

82 MicroSolve Commercial 82 Example -604-242-09 Warehouse Building with Office - 1 Story 1 Section – 1 Occupancy – Runs Income System 18,512 SQFT Examples

83 MicroSolve Commercial 83 Example -704-242-10 Manufacturing Plant - 3 Buildings 3 Sections – 4 Occupancies 63,256 SQFT Examples

84 MicroSolve Commercial 84 Example -804-242-11 Lumber Yard - 2 Main Buildings with 7 Lumber Sheds 3 Sections - 11 Occupancies - 56,642 SQFT Examples

85 MicroSolve Commercial 85 Example -904-242-12 Marriott Hotel - 1 House 1 Sections – 1 Occupancy – 3 Additions 51-191 SQFT Examples

86 MicroSolve Commercial 86 20 Height – Service Repair Garage 10 Height – Office 16 Height – Equip. Shed Office SQFT = 2,250 – 26% Full Basement Partial FNA Garage SQFT = 6,300 – 74% Total SQFT = 8,550 Class S - Stud Metal Siding EFF Age – 30 Porch Addition = 200 Sqft Equip Bldg SQFT 2 = 3,200 Class D - Stud Wood Siding EFF Age - 20 Record to Enter – 04-242-13 and 14

87 MicroSolve Commercial Calculation Errors 87

88 MicroSolve Commercial 88 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

89 MicroSolve Commercial 89 Calculation Error Sample -1 The Most Common One

90 MicroSolve Commercial 90 Calculation Error Sample -2

91 MicroSolve Commercial 91 Calculation Error Sample -3

92 MicroSolve Commercial 92 Calculation Error Sample -4

93 MicroSolve Commercial 93 Land Cost System Error – Missing NBHD Code

94 MicroSolve Commercial 94 Income Approach

95 MicroSolve Commercial 95 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

96 MicroSolve Commercial 96 Apartment Sales TownOwnerSaleDateSalePriceUnits$/UnitSQFT$/SQFT MiddleburyStone City10/25/2004410000851250511280 MiddleburyScout Property3/1/2005260000737143478854 VergennesLewisburgLLC4-Oct212500453125355460 VergennesPerron5-Jan227000456750323070 Industrial TownSaleDateSalePriceAcresSQFTType$/Sqft BenningtonListing$995,0007.8428875Industrial$34.45 SwantonListing$2,250,00013.6985000Industrial$26.47 Essex JctListing$2,950,00018.3277280Industrial$38.17 Morrisonville10/6/04$425,0004.1032064Industrial$13.00 Middlebury3/6/30$725,2754.6511580Comm/Indust$62.63 Middlebury11/21/03$555,0004.288320Industrial/Light$66.00 Small Industrial (Less than 25,000)$60/Sqft Large Industrial$30 - 50/Sqft Rents$3.50 / Sqft Income Approach

97 MicroSolve Commercial 97 Retail Sales TownSaleDateSalePriceAcresSQFTType$/SQFT Middlebury10/4/04$217,5000.161896Retail$114.00 Middlebury12/17/04$415,0000.044400Retail$94.00 Bristol12/1/04$180,0001.175547Retail$32.00 Barre City6/17/02$275,0000.486000Retail$45.00 Middlebury5/15/01$340,0000.497422Retail$45.80 Rutland City11/3/03$675,000Unknown10000Retail$67.50 Middlebury6/9/99$604,0000.1510728Retail/Apt$56.00 Middlebury4/14/05$618,3004.1510182Lumber/Retail$60.72 Middlebury4/14/05$281,7000.704938Lumber/Warehse$57.00 Vergennes11/3/04$207,0000.0323162 Apt/Retail$90.00 Vergennes$215,0000.0764712 Apt/2Retail$56.00 Typical Value Approximately $50/Square Foot Typical Value DownTown Approximately $100/Square Foot Core Rents$15First Floor $12Upper Floor $6Below Grade Outlying Rents$12First Floor $10Upper Floor 25 Percent Expenses 10 Percent Overall Cap Rate Income Approach

98 MicroSolve Commercial 98 PROPERTY IDENTIFICATION PARCEL IDJO00490022 NAMELeader Evaporator PROP. DESC.WharehouseSale Price 1,600,000 10/2005 NEIGHBORHOOD2 LAND - COST $ 283,900 RESIDUAL LAND: $ - BLDG - COST $ 1,588,259 VALUE-COST $ 1,882,200OR /SF VALUE-INCOME $ 1,898,780OR /SF FINAL VALUE $ 1,882,200OR /SF VALUE/UNIT: INCOME/EXPENSE INFORMATION NET LEASABLE 78,172SF UNIT OFUNITS ORECONOMIC USECOMPARISONSIZE/SFRENT/UNIT RENT ROOMS $/RENT/DAY - $ - EFFICIENCY UNITS $/RENT/MO. - $ - 1-BEDROOM UNITS $/RENT/MO. - $ - 2-BEDROOM UNITS $/RENT/MO. - $ - 3-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. LOSS5.0% EXPENSE %25.0% CAP. RATE11.00% TAX LOAD INCOME APPROACH VALUE INDICATIONS INCOME APPROACH SUMMARY - ECONOMIC RENT GROSS INCOME $ 293,145100.0% VAC. & CR. LOSS $ 14,6575.0% EFF. GROSS INCOME $ 278,48895.0% EXPENSES (TOTAL) $ 69,62225.0% NET INCOME $ 208,86675.0% OAR CAP11.0%RESIDUAL. LAND: $ - VALUE INDICATION $ 1,898,780 INDICATED VALUE: $ 1,898,780 Income Approach

99 MicroSolve Commercial 99 Income Approach

100 MicroSolve Commercial 100 Conclusions and Summary

101 MicroSolve Commercial 101 NEMRC/MicroSolve Commercial System has made improvements. Still multiple versions in existence across the State. It is simple to use, but can value complex properties. There is no cookbook to appraising property. Must understand the market and market conditions to value commercial property. Cost is a means to MARKET VALUE.


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