Problem #1 (5 points)
You are interested in purchasing a warehouse property and have located a comparable property that you think is good enough to apply the sales comparison approach. Using the data below, please answer the following questions:
a) What is the price per square foot for the subject property? (3 points)
b) What is the total value of the subject property in dollars? (1 point)
c) Do you think the comparable property used to conduct the valuation is appropriate to use as a comparable for purposes of the sales comparison method? or not? Please explain your reasoning. (1 point)

Adjustments Rules
Age (depreciation) 5.00%
Condition
Good
Average 10.00%
Poor 25.00%
Location
Prime
Secondary 30.00%
Date of Sale 1.00%

Problem #2: (5 points)
Using the data below, answer the following questions:
a) What the value of the multifamily property using the cost approach? (2.5 points)
b) What is the value of the industrial property using the cost approach? (2.5 points)

Multifamily Industrial

Total economic life (years) 100 80
Remaining economic life (years) 70 60
Market value of land $2,000,000 $2,500,000
Replacement costs
Building costs $6,750,000 $3,750,000
Developer’s profit $510,000 $310,000
Deterioration (curable and incurable) $3,250,025 $1,654,125
Obsolescence
Functional $50,000 $75,000
Locational $700,000 $300,000
Economic $300,000 $200,000