Presentation on theme: "MicroSolve Commercial"— Presentation transcript:
1 MicroSolve Commercial Edgar ClodfelterAPAS, LLCChris MieleNEMRC
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
3 MicroSolve Commercial System OverviewMarshall & Swift Commercial EstimatorRelational 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 Parcel Data come primarily from NEMRC System.Zip Code Determines Local Multiplier Used by M&SNeighborhood is used for Land Calculations
5 MicroSolve Commercial Land Calculations in Commercial same as ResidentialSite Improvements in Commercial same as Residential
6 MicroSolve Commercial Section Data describes the Building/Buildings area(s).There can be many uses or occupancies within a section.
7 MicroSolve Commercial Components describe the characteristics of the structure.
8 MicroSolve Commercial Additions allow for additional value for items not included in the Cost system.
9 MicroSolve Commercial Basement information allows for additional value on portions of the building below grade.
10 MicroSolve Commercial Final Values are stored in the Valuation section.
11 MicroSolve Commercial Multiple Pictures can be linked to each record.
12 MicroSolve Commercial 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 CR - ResidentialC - CommercialO – CondominiumN - No Cama FileThree separate databases
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.
18 MicroSolve Commercial Need to decide if building is really a commercial style.Houses converted to OfficesGaragesLow quality steel buildingsAre there considerations making a building suited to residential database?Outbuildings - garages, shedsConcerns about excessive valueNeed for greater control of valueMultiple dwellings/buildings
19 MicroSolve Commercial Three Approaches to Value1. Cost ApproachIndication 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 ApproachValuation procedure based on prices paid in actual market transactions used to determine most probable sale price of property being appraised.Income ApproachConverts anticipated benefits (dollars) to be derived from ownership into a value estimate.
20 MicroSolve Commercial Cost Approach and ValueReplacement CostTotal cost of building construction required to:Replace the subject building.Substitute with like or equal utility.Using current standards of materials and designReproduction CostTotal cost of building construction to replace with actual replica of salient characteristics or components.Newer buildings replacement approximates reproduction.Use segregated cost method for older buildingsActual replacement may not be available or desirable.Principle of SubstitutionEconomic principle that the price of a commodity tends to be no higher than the price of a substitute having equal utility without undue delay.
21 MicroSolve Commercial Cost Approach and ValueMarshall 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:Direct Costs (labor, materials, equipment, fees and charges)Indirect Costs (overhead, permits, financing, selling expenses)Profit.
22 MicroSolve Commercial Cost Approach and ValueCost ApproachBased on cost of production.Applicable for new or proposed construction.Applicable for unique or special purpose properties.Represents the highest and best use of the site.Cost is an avenue to market value.The goal is not Cost, but Market
23 MicroSolve Commercial Marshall and Swift Concepts
24 MicroSolve Commercial Marshall and Swift Methods and TermsCalculator Method – (Used with commercial estimator)Based on concept of cost per increment of floor area.Areas or buildings are defined by a section or multiple sections.Sections are defined by the use of the building, or occupancy. Example – Restaurant, Health Club, Bank, Office, Service Station.Within each occupancy are sqft refinements or components. Example – Exterior Wall, Heating/Cooling, Elevator, Mezzanine.Buildings are classified by Occupancy, and grouped into Sections.Segregated Method – (Not used with commercial estimator)Computes total cost by successively adding the costs of all components of the building.The method is specific and detailed.
26 MicroSolve Commercial 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 BuiltEffective Age (years) * Use either YB or Effective Age.Depreciation %PhysicalFunctionalEconomic* Required Field SECTION: BUILDING DATABuilding 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).
27 MicroSolve Commercial SectionSingle Section: Can be one building with one section.Example:
29 MicroSolve Commercial SectionSection ExampleOne Building - One SectionSmall Satellite Bank BuildingSimple ExampleOne SectionOne Occupancy-BankTwo Additions
30 MicroSolve Commercial SectionSection Example - 2One Building - Two SectionsOffice Building and ApartmentExample BreakoutTwo SectionsThree Occupancies- Offices, Apt.Basement FinishAlternative BreakoutThree SectionsFour Occupancies
31 MicroSolve Commercial SectionSection Example - 3Two Buildings – Two Sections on same PropertyManufacturing BuildingRestaurant Building with Retail and apartment.More Complex ExampleTwo Sections, Two BuildingsSection OccupanciesSection 2 – 3 Occupancies
32 MicroSolve Commercial Section FieldsTotal 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.) 24525No Commas
33 MicroSolve Commercial Section FieldsNumber of StoriesEstimate 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 ____
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 1Story/Section __6__ Building ____Section 2:Story/Section __3__ Building ____
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__
36 MicroSolve Commercial Perimeter or ShapePerimeter: 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:Shape: If you do not know the perimeter, you can enter one of the following shapes:1=Square2=Rectangular or Slightly Irregular3=Irregular4=Very Irregular
37 MicroSolve Commercial DepreciationDepreciation (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.Base date is now the base date of the cost tables in use.DefinitionsDepreciation 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 partor all of the property.- Many older buildings suffer fromfunctional obsolescence.- Lack of Elevators, Adequate Wiring3. External, locational or economic obsolescence is loss in value due to causes outside the property and independent of it.
38 MicroSolve Commercial DepreciationEffective 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 TablesOccupancyClassABCDSApartments605550Home for Elderly4540Market – Low Cost--3530Warehouse
39 MicroSolve Commercial DepreciationExampleRetail/Office BuildingClass C , Average QualityTypical Life = 50 YearsElectrical System Replaced 10 Yrs. AgoHeating system replaced 5 Yrs. AgoRoof repaired 8 Yrs. AgoInterior renovations 10 Yrs. Ago.Estimated Remaining Life = 40 YrsTypical Building Life = 50 YearsEstimated Remaining = 40 YearsEffective Age = 10 YearsWhat other form of obsolescence is associated with this building?Compare the two buildings Utility.
41 MicroSolve Commercial DepreciationExamplesIf 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.
43 MicroSolve Commercial OCCUPANCYOccupancy, 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 frequentlylocated in converted retail space.
44 MicroSolve Commercial OCCUPANCYMust 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 CodeOcc Name%ClassHeightRank50Retail Store40D10234Laundromat6014
45 MicroSolve Commercial Occupancy-related factors: (all required):Occupancy TypeSelect from the categorical list.Occupancy PercentTotal of all occupancies in a section must be 100%Occupancy ClassA, B, C, D, SOccupancy RankQuality 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 HtIn feet.
46 MicroSolve Commercial Occupancy Codes in MicroSolve and M&SMore than 150CAMANameM&S CodeCAMANameM&S CodeCodeNameValNoData51ArtCrftsBl3551Apartment30052ClassrmsEl3562Armory30153CommonsEle3573Auditorium30254GymEleSecS3584AutoShowRm30355LectClssrm3595Bank30456MediaCntrE3606Barn30557ManualArts3617BowlingAll30658MultipurpB3628ChurchWSun30859PhysEdBldg3639Church30960SciClassrm36410CityClub31061EleSchoolE36511Clubhouse31162JrHghSchoo36612Convalesce31363ArtsCrftsB36713CountryClu31464ClassrmsCo36814Creamery31565CommonsCol36915Dairy31666GymCollege37016DairySales31767LectHallCo37117DeptStore31868LibrryColl37218DiscountSt31969TechTradeB37319Dispensary3207037420Dormitory3217137521FireStnSta32272SciBldgCol37622FratBldg32373CollegeEnt37723FratHse32474Stable37824ServGrgObs32575TheatersLi37925StorGarage32676TheatersCi38026GovBldg32777VetrnryHos38127StorHangar32878TobaccoBar38328HangarMain32979BarberShop38429HomeForThe33080MiniWareho38630Hospital33181TransWareh38731Hotel33282UndrgrndPa38832IndManufac33483EquipStorB38933CorrFacili33584LumberStor39034Laundromat33685MaterlStor391
47 MicroSolve Commercial Occ CodeOcc Name%ClassHeightRank50Retail Store40D10234Laundromat6014%Occupancy PercentExample:Total of all occupancies in a section must be 100%Total SQFT = 7,000Retail = 4,200Laundromat = 2,800Laundromat Percent = 2,800/7,000 = .40 or 40%Retail = 100 – 40 = 60%
48 MicroSolve Commercial Occ CodeOcc Name%ClassHeightRank50Retail Store40D10234Laundromat6014ClassClass of ConstructionDivides buildings into basic cost groups by type of framing(supporting columns and beams), walls, floor and roof structuresand fireproofing.A - Fireproof Structural Steel FrameB - Reinforced Concrete FrameC – Masonry Bearing WallsD - Wood or Steel Stud Framed Exterior WallsS - Metal Frame Walls
49 MicroSolve Commercial CLASS A: FIREPROOF STRUCTURAL STEEL FRAMEFireproofed 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.
50 MicroSolve Commercial CLASS B: REINFORCED CONCRETE FRAMEReinforced 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.
51 MicroSolve Commercial CLASS C: MASONRY BEARING WALLSMasonry 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.
52 MicroSolve Commercial CLASS D: WOOD- OR STEEL-FRAMED EXTERIOR WALLSClass 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.
53 MicroSolve Commercial CLASS S: METAL FRAME AND WALLSIncombustible 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.
54 MicroSolve Commercial Story HeightOcc CodeOcc Name%ClassHeightRank50Retail Store40D10234Laundromat6014HeightStory 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)
55 MicroSolve Commercial Story Height ExamplesWhen 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 HeightsOcc CodeOcc Name%ClassHeightRank44Post Office33D1825Bank6710
56 MicroSolve Commercial Story Height Examples - AveragingExample 2: One section – One Occupancy – Different HeightsThree Story Building – 1st Floor 18 Foot- 2nd 3rd Floors 10 Foot EachOcc CodeOcc Name%ClassHeightRank5Bank100D12.672
57 MicroSolve Commercial Story Height ExamplesExample 3: One section – One Occupancy – Different HeightsFor 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
58 MicroSolve Commercial RankOcc CodeOcc Name%ClassHeightRank50Retail Store40D10234Laundromat60141.5RankRank refers to Quality .The quality scales against which most buildings and their parts must be rated are:Rank 1 - LOW COSTRank 2 – AVERAGERank 3 – GOODRank 4 – EXCELLENTSplit grades are allowed
59 MicroSolve Commercial RankLow (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.
60 MicroSolve Commercial Examples Using MVS Commercial ManualExamples Using MVS Commercial
62 MicroSolve Commercial ComponentsBuilding 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.
63 MicroSolve Commercial ComponentsWall TypeSelect from the categorical list.Wall PercentPercentages must total 100.Wall UnitsEnter area in square feet.Wall RankRange is from a low of 1 to a high of 4.Wall Units of MeasureChoose Square Feet.Wall Other UnitsLeave blank.Wall DepreciationEnter a percentage if desired.Heat/Cool TypeHeat/Cool PercentHeat/Cool UnitsHeat/Cool RankHeat/Cool UOMHeat/Cool Other UnitsHeat/Cool DepreciationComponent TypeSelect from the categorical list. See details in Part 2.Component PercentPercentages must total 100.Component UnitsEnter area in square feet or count.Component RankRange is from a low of 1 to a high of 4.Component UOMChoose Square Feet or Units (i.e. count).Component Other UnitsSee details in Part 2.Component DeprecEnter a percentage if desired.
64 MicroSolve Commercial Components – Wall TypeComponents:ExteriorWall Type Percent Units Grade UOM Depreciation12Type: Brick 1-Solid 3-Brick w/ Block Back Block: 8-Concrete 12- Textured 17 – GlassConcrete: 18-Formed 20- Precast Stone: 23- Rubble Veneer Pre-Engineered: 43- Metal Sandwich PanelStud Walls: 56-Wood 57- Plywood 58-Hardboard 60- Metal 61-Vinyl 62-Shingles 65-Stucco67-Brick Veneer 68- Block Veneer 72- Stresskin PanelSingle 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 NumberWall TypeSelect from the categorical list.Wall PercentPercentages must total 100.Wall UnitsEnter area in square feet. Not needed for Wall TypeWall RankRange is from a low of 1 to a high of 4.Wall Units of MeasureChoose Square Feet.Wall Other UnitsLeave blank.Wall DepreciationEnter a percentage if desired.
65 MicroSolve Commercial Wall DefinitionsDescriptions for exterior walls: (See back section of manual)MASONRY WALLS – CAMA Pre-Code MN (M&S Codes )These walls are constructed entirely of masonry units (or concrete) which are bonded together with mortar or some other type of cementing material.CURTAIN WALLS – CAMA Pre-Code CW (M&S Codes )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.PRE‑ENGINEERED WALLS – CAMA Pre-Code PE (M&S Codes )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 )These walls are of wood or steel stud bearing wall construction.- When stresskin sandwich panel replaces the stud framing, use additive component Number 891.SINGLE WALL CONSTRUCTION – CAMA Pre-Code SN (M&S Codes )Refers to a wall enclosure that is typically applied over an open skeleton prefabricated metal or wood pole framed building.
66 MicroSolve Commercial Components - Heating/CoolingHeating/Cooling Type Percent Units Grade UOM Depreciation12Type: 1-Electric 2-Elec. Wall 3-Forced Air 4-Hot Water 5-Hot Water Rad. 6-Space Heat 7-Steam8-Steam No Boiler 9-Ventilation 10-Wall Furnace 11-Package Unit 12-Warm Cool Air13-Hot Chill Water 14-Heat Pump 15-Floor Furnace 16-Ind Thru Wall 17-Complete HVAC18- EvapCool 19-Refrig Cool 20- No HVACHeat/Cool TypeSelect from the categorical list.Heat/Cool PercentPercentages must total 100.*Heat/Cool UnitsEnter area in square feet.*Heat/Cool RankRange is from a low of 1 to a high of 4.Heat/Cool UOMChoose Square Feet.Heat/Cool Other UnitsLeave blank.Heat/Cool DepreciationEnter a percentage if desired.*Enter Units in SQFT OR Percent of Heating AreaThe commercial manual has a good description of each type.
67 MicroSolve Commercial Components - OtherComponentType Percent Units Grade UOM Depreciation1234Type: 1-Elevator by Area 2-Passenger Elevator 3-Freight Elevator 5-Sprinklers 6-Dry Sprinklers 7- Wet Sprinklers8-Mezzanine 9-Display Mezzanine 10-Office Mezzanine 11-Open Mezzanine 12- Storage Mezzanine13-Malls Open 14-Malls Covered 15-Malls Enclosed 16-Malls Elevator 17-Balcony 18-Fire AlarmComponent TypeSelect from the categorical list. See details in Part 2.Component PercentPercentages must total 100.Component UnitsEnter area in square feet or count.Component RankRange is from a low of 1 to a high of 4.Component UOMChoose Square Feet or Units (i.e. count).Component Other UnitsSee details in Part 2.Component DeprecEnter a percentage if desired.
68 MicroSolve Commercial Components – Summary ChartComponent TypeUnits%HVACSquare feet of floor area servedPercentage of total floor area servedExterior WallsN/APercentage of total wall areaElevators (Square Foot Method)Elevators (Count Method)Number of elevatorsSprinklersMezzaninesSquare feet of mezzanine areaBalconiesSquare feet of balcony areaMallsSquare feet of mall areaFire Alarm SystemsLand Value (Site Value)Dollar amountSite Improvements
69 MicroSolve Commercial AdditionsAdditions allow the inclusion of items to the report that are not available in the M&S CAMA program.
70 MicroSolve Commercial AdditionsReport Headings indicates where to print the addition in the report, using one of the following codes:BasicBasic Structure Cost - DepreciatedSuperSuperstructure Cost - DepreciatedBsmntBasement CostExtraExtrasDeprDepreciation (prints as negative)Tot BldgTotal Value Added to Building – Not DepreciatedExamples:Porches or DecksTanksCanopyStorage Buildings
73 MicroSolve Commercial 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.Basement:Basement Levels:______________________ Basement Perimeter: ______________________Basement Shape: ______________________ 1-Appx Sq 2- Sl Irr 3- Irregular 4- Very IrregularBasement Occupancy Class Type Area Depth Grade Depreciation12Occupancy: See Codes Class: A,B,C,D,SType: 1-Finished 2- Semi Finished 3-Unfinished 4-Display 5-Office 6-Parking 7-ResidentialBasementComponent Type Units Grade UOM Depreciation12
74 MicroSolve Commercial BasementBasement LevelsEnter number of levels.Basement PerimeterBasement ShapeROne or the other is required if levels are specified.Basement OccupancyTypes are the same as for sections.Bsmt Occ ClassClass – A, B, C, D, or S – need not be the same as section class, though usually it is.Bsmt Occ TypeOptions are: Finished, Resident Units, Parking, Semifinished, Display, Laboratory, Unfinished, Storage, ClassroomBsmt Occ AreaIn square feet.Bsmt Occ DepthIn feet – parallel to story height.Bsmt Occ RankQuality 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 PercentPercentages must total 100.Bsmt Comp UnitsEnter square feet.Bsmt Comp RankBsmt Comp Other UOMChoose Square Feet or Units (i.e. count).Bsmt Comp Other UnitsSee details in Part 2.Bsmt Comp Deprec.Enter a percentage.
88 MicroSolve Commercial Calculation ErrorsCommercial 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.
89 MicroSolve Commercial Calculation Error Sample -1The Most Common One
95 MicroSolve Commercial Income ApproachIncome 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.
96 MicroSolve Commercial Income ApproachApartment SalesTownOwnerSaleDateSalePriceUnits$/UnitSQFT$/SQFTMiddleburyStone City10/25/2004410000851250511280Scout Property3/1/2005260000737143478854VergennesLewisburgLLC4-Oct212500453125355460Perron5-Jan22700056750323070IndustrialTownSaleDateSalePriceAcresSQFTType$/SqftBenningtonListing$995,0007.8428875$34.45Swanton$2,250,00013.6985000$26.47Essex Jct$2,950,00018.3277280$38.17Morrisonville10/6/04$425,0004.1032064$13.00Middlebury3/6/30$725,2754.6511580Comm/Indust$62.6311/21/03$555,0004.288320Industrial/Light$66.00Small Industrial (Less than 25,000)$60/SqftLarge Industrial$ /SqftRents$3.50 / Sqft
97 MicroSolve Commercial Income ApproachRetail SalesTownSaleDateSalePriceAcresSQFTType$/SQFTMiddlebury10/4/04$217,5000.161896Retail$114.0012/17/04$415,0000.044400$94.00Bristol12/1/04$180,0001.175547$32.00Barre City6/17/02$275,0000.486000$45.005/15/01$340,0000.497422$45.80Rutland City11/3/03$675,000Unknown10000$67.506/9/99$604,0000.1510728Retail/Apt$56.004/14/05$618,3004.1510182Lumber/Retail$60.72$281,7000.704938Lumber/Warehse$57.00Vergennes11/3/04$207,0000.0323162 Apt/Retail$90.00$215,0000.0764712 Apt/2RetailTypical Value Approximately $50/Square FootTypical Value DownTown Approximately $100/Square FootCore Rents$15First Floor$12Upper Floor$6Below GradeOutlying Rents$1025 Percent Expenses10 Percent Overall Cap Rate
101 MicroSolve Commercial 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.