Transcript MicroSolve Commercial

Edgar Clodfelter
APAS, LLC
Chris Miele
NEMRC
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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
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MicroSolve Commercial
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.
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MicroSolve Commercial
•Parcel Data come primarily from NEMRC System.
•Zip Code Determines Local Multiplier Used by M&S
•Neighborhood is used for Land Calculations
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MicroSolve Commercial
•Land Calculations in Commercial same as Residential
•Site Improvements in Commercial same as Residential
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MicroSolve Commercial
•Section Data describes the Building/Buildings area(s).
•There can be many uses or occupancies within a section.
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MicroSolve Commercial
•Components describe the characteristics of the structure.
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MicroSolve Commercial
•Additions allow for additional value for items not included
in the Cost system.
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MicroSolve Commercial
•Basement information allows for additional value on
portions of the building below grade.
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MicroSolve Commercial
•Final Values are stored in the Valuation section.
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•Multiple Pictures can be linked to each record.
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•Information about the property can be stored in the Notes
section.
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 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
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 Caution: Just because a property is classified or
categorized as commercial does not mean it should be
valued in the commercial system.
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 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
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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.
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Cost Approach and Value
1. Replacement Cost
•
Total cost of building construction required to:
a.
b.
c.
Replace the subject building.
Substitute with like or equal utility.
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.
b.
c.
Newer buildings replacement approximates reproduction.
Use segregated cost method for older buildings
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.
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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.
b.
c.
Direct Costs (labor, materials, equipment, fees and charges)
Indirect Costs (overhead, permits, financing, selling expenses)
Profit.
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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
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Marshall and Swift Concepts
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Marshall and Swift Methods and Terms
Calculator Method – (Used with commercial estimator)
1.
a.
b.
c.
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.
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.
Segregated Method – (Not used with commercial estimator)
2.
a.
b.
Computes total cost by successively adding the costs of all
components of the building.
The method is specific and detailed.
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 Section Information
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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
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Section
•
Single Section: Can be one building with one section.
Example:
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Section
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Section
• Section Example
o One Building - One Section
o Small Satellite Bank Building
• Simple Example
o
o
o
One Section
One Occupancy-Bank
Two Additions
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Section
• Section Example - 2
o One Building - Two Sections
o Office Building and Apartment
• Example Breakout
o
o
o
Two Sections
Three Occupancies- Offices, Apt.
Basement Finish
• Alternative Breakout
o
o
Three Sections
Four Occupancies
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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
o
o
Two Sections, Two Buildings
Section 1 - 2 Occupancies
Section 2 – 3 Occupancies
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Section Fields
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
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Section Fields
 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 ____
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 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:
Section 1
6 Stories
 The entries for this building are:
Section 1
Story/Section __6__ Building ____
Section 2:
Story/Section __3__ Building ____
Section 2
3 Stories
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 Horizontally Section Buildings: If
you horizontally section a building,
enter the number of stories in each
section under “Number of Stories:
 The entries for the Building are:
Section,” and the total number of
stories in the building under
“Number of Stories: Building.”
Section 1:
Stories/Section __1__ Building __6__
 Example: A building that has a onestory bank on the first floor (20'
Section 2:
Stories/ Section __5__Building __6__
story height), and five stories of
offices on the second through sixth
stories (10' story height), is sectioned
horizontally as follows:
Section 2
5 Stories
Section 1
1 Story
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Perimeter or Shape
 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
perimeter.
to
enter
 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:

660feetx1story500 feetx 9stories 5,160feet

10Stories
10Stories
= 516feet
Shape: If you do not know the
perimeter, you can enter one of the
following shapes:
the
1=Square
2=Rectangular or
Slightly Irregular
3=Irregular
4=Very
Irregular
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Depreciation
 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.
 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.



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.
 System documentation regarding
base date and effective age has
changed.
o Base date is now the base date of
the cost tables in use.
Curable – Short lived items (Flooring, Paint)
Incurable – Long lived items, require major
construction to replace (Foundations,
Heating systems)
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Depreciation
 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
Occupancy
Class
A
B
C
D
S
Apartments
60
60
55
50
50
Home for Elderly
50
50
45
40
40
Market – Low Cost
--
--
35
30
30
Warehouse
--
--
35
30
30
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Depreciation
 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.
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Depreciation
Field Entered
Uses
Year Built
Effective Age
Yes
Effective Age
Effective Age
Yes
Overall Depr
No Age
No
Physical Depr
No Age
No
Lookup
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Depreciation
Examples
• 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.
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 Occupancy Information
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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.
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OCCUPANCY
Occ Code
Occ Name
%
50
Retail Store
40
D
10
2
34
Laundromat
60
D
14
2
Class Height
Rank
•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.
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Occupancy-related factors: (all required):

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.
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Occupancy Codes in MicroSolve and M&S
More than 150
CAMA
Code
Name
Name
0 NoData
1 Apartment
2 Armory
3 Auditorium
4 AutoShowRm
5 Bank
6 Barn
7 BowlingAll
8 ChurchWSun
9 Church
10 CityClub
11 Clubhouse
12 Convalesce
13 CountryClu
14 Creamery
15 Dairy
16 DairySales
17 DeptStore
18 DiscountSt
19 Dispensary
20 Dormitory
21 FireStnSta
22 FratBldg
23 FratHse
24 ServGrgObs
25 StorGarage
26 GovBldg
27 StorHangar
28 HangarMain
29 HomeForThe
30 Hospital
31 Hotel
32 IndManufac
33 CorrFacili
34 Laundromat
M&S Code
Val
CAMA
Code
0
300
301
302
303
304
305
306
308
309
310
311
313
314
315
316
317
318
319
320
321
322
323
324
325
326
327
328
329
330
331
332
334
335
336
Name
Name
51 ArtCrftsBl
52 ClassrmsEl
53 CommonsEle
54 GymEleSecS
55 LectClssrm
56 MediaCntrE
57 ManualArts
58 MultipurpB
59 PhysEdBldg
60 SciClassrm
61 EleSchoolE
62 JrHghSchoo
63 ArtsCrftsB
64 ClassrmsCo
65 CommonsCol
66 GymCollege
67 LectHallCo
68 LibrryColl
69 TechTradeB
70 MultipurpB
71 PhysEdBldg
72 SciBldgCol
73 CollegeEnt
74 Stable
75 TheatersLi
76 TheatersCi
77 VetrnryHos
78 TobaccoBar
79 BarberShop
80 MiniWareho
81 TransWareh
82 UndrgrndPa
83 EquipStorB
84 LumberStor
85 MaterlStor
M&S Code
Val
355
356
357
358
359
360
361
362
363
364
365
366
367
368
369
370
371
372
373
374
375
376
377
378
379
380
381
383
384
386
387
388
389
390
391
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Occ Code
Occ Name
%
%
50
Retail Store
40
D
10
2
34
Laundromat
60
D
14
2
Class Height
Rank

Occupancy Percent
Total of all occupancies in a section must be 100%

Example:
Total SQFT = 7,000
Retail = 4,200
Laundromat = 2,800
Laundromat Percent = 2,800/7,000 = .40 or 40%
Retail = 100 – 40 = 60%
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Occ Code
Occ Name
%
50
Retail Store
40
D
10
2
34
Laundromat
60
D
14
2
Class Height
Class
Rank
• Class of Construction
oDivides 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
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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.
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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.
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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.
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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.
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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.
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Story Height
Occ Code
Height
Class Height
Occ Name
%
50
Retail Store
40
D
10
2
34
Laundromat
60
D
14
2
Rank
• 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)
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Story Height Examples
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
Occ Code
Occ Name
%
44
Post Office
33
D
18
2
5
Bank
67
D
10
2
Class Height
Rank
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Story Height Examples - Averaging
• Example 2: One section – One Occupancy – Different Heights
Three Story Building – 1st Floor 18 Foot
- 2nd 3rd Floors 10 Foot Each
18 feet + 2 x10 feet 38 feet
Average Story Height =
=
= 12.67 feet
3Stories
3Stories
Occ Code
5
Occ Name
%
Bank
100
Class Height
D
12.67
Rank
2
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Story Height Examples
•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
8 Feet
10 feet + 10 feet +
 24 feet /2  12 Foot
2
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Rank
Occ Code
Occ Name
%
50
Retail Store
40
D
10
2
34
Laundromat
60
D
14
1.5
Class Height
Rank
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
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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.
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Examples
Using
Commercial
Examples
Using
MVSMVS
Commercial
Manual
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Components
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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.
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Components







Wall Type
Wall Percent
Wall Units
Wall Rank
Wall Units of Measure
Wall Other Units
Wall Depreciation
Select from the categorical list.
Percentages must total 100.
Enter area in square feet.
Range is from a low of 1 to a high of 4.
Choose Square Feet.
Leave blank.
Enter a percentage if desired.






Heat/Cool Type
Heat/Cool Percent
Heat/Cool Units
Heat/Cool Rank
Heat/Cool UOM
Heat/Cool Other
Units
Heat/Cool
Depreciation
Select from the categorical list.
Percentages must total 100.
Enter area in square feet.
Range is from a low of 1 to a high of 4.
Choose Square Feet.
Leave blank.
Component Type
Component Percent
Component Units
Component Rank
Component UOM
Component Other
Units
Component Deprec
Select from the categorical list. See details in Part 2.
Percentages must total 100.
Enter area in square feet or count.
Range is from a low of 1 to a high of 4.
Choose Square Feet or Units (i.e. count).
See details in Part 2.








Enter a percentage if desired.
Enter a percentage if desired.
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Components – Wall Type
Components:
ExteriorWall Type
Percent
Units
Grade
UOM
Depreciation
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







Wall Type
Wall Percent
Wall Units
Wall Rank
Wall Units of Measure
Wall Other Units
Wall Depreciation
Select from the categorical list.
Percentages must total 100.
Enter area in square feet. Not needed for Wall Type
Range is from a low of 1 to a high of 4.
Choose Square Feet.
Leave blank.
Enter a percentage if desired.
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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.
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.
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.
- When stresskin sandwich panel replaces the stud framing, use additive component Number 891.
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.
65
MicroSolve Commercial
Components - Heating/Cooling
Heating/Cooling Type
Percent
Units
Grade
UOM
Depreciation
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







Heat/Cool Type
Heat/Cool Percent
Heat/Cool Units
Heat/Cool Rank
Heat/Cool UOM
Heat/Cool Other Units
Heat/Cool Depreciation
Select from the categorical list.
Percentages must total 100.*
Enter area in square feet.*
Range is from a low of 1 to a high of 4.
Choose Square Feet.
Leave blank.
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
MicroSolve Commercial
Components - Other
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
Component Percent
Component Units
Component Rank
Component UOM
Component Other
Units
Component Deprec
Select from the categorical list. See details in Part 2.
Percentages must total 100.
Enter area in square feet or count.
Range is from a low of 1 to a high of 4.
Choose Square Feet or Units (i.e. count).
See details in Part 2.
Enter a percentage if desired.
67
MicroSolve Commercial
Components – Summary Chart
Component Type
HVAC
Exterior Walls
Elevators (Square Foot
Method)
Elevators (Count
Method)
Sprinklers
Mezzanines
Balconies
Malls
Fire Alarm Systems
Land Value (Site
Value)
Site Improvements
Units
Square feet of floor area
served
N/A
Square feet of floor area
served
Number of elevators
%
Percentage of total floor
area served
Percentage of total wall
area
Percentage of total floor
area served
N/A
Square feet of floor area
served
Square feet of mezzanine
area
Square feet of balcony
area
Square feet of mall area
Square feet of floor area
served
Dollar amount
Percentage of total floor
area served
N/A
Dollar amount
N/A
N/A
N/A
Percentage of total floor
area served
N/A
68
MicroSolve Commercial
Additions
Additions allow the inclusion of items to the report that are not available in
the M&S CAMA program.
69
MicroSolve Commercial
Additions
Report Headings indicates where to print the addition in the report,
using one of the following codes:
Basic
Super
Bsmnt
Extra
Depr
Tot Bldg
Basic Structure Cost - Depreciated
Superstructure Cost - Depreciated
Basement Cost
Extras
Depreciation (prints as negative)
Total Value Added to Building – Not Depreciated
Examples:
•Porches or Decks
•Tanks
•Canopy
•Storage Buildings
70
MicroSolve Commercial
71
MicroSolve Commercial
72
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: ______________________
Basement
Occupancy
Class
Type
1-Appx Sq 2- Sl Irr 3- Irregular 4- Very Irregular
Area
Depth
Grade
Depreciation
1
2
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
BasementComponent
Type
Units
Grade
UOM
Depreciation
1
2
73
MicroSolve Commercial
Basement




Basement Levels
Basement Perimeter
Basement Shape
Basement Occupancy
R
R
One or the other is required if levels are specified.
Types are the same as for sections.

Bsmt Occ Class
R

Bsmt Occ Type
R
Class – A, B, C, D, or S – need not be the same as
section class, though usually it is.
Options are: Finished,
Resident Units,
Parking, Semifinished, Display, Laboratory, Unfinished,
Storage, Classroom



Bsmt Occ Area
Bsmt Occ Depth
Bsmt Occ Rank
R
R
R








Enter number of levels.
In square feet.
In feet – parallel to story height.
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.
Bsmt Component
Type
Bsmt Comp Percent
Bsmt Comp Units
Bsmt Comp Rank
Depreciation is not required.
Options as in above-ground section components;
heat/cool is not available as an option.
Percentages must total 100.
Enter square feet.
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
Bsmt Comp Other
Units
Bsmt Comp Deprec.
Choose Square Feet or Units (i.e. count).
See details in Part 2.
Enter a percentage.
74
MicroSolve Commercial
Basement – Cost Report
75
MicroSolve Commercial
Examples
76
MicroSolve Commercial
Examples
Example -1
04-242-04
Retail/Apartments - 3 Story Brick Building
1 Section – 2 Occupancies – Unfinished Basement
10,557 SQFT
77
MicroSolve Commercial
Examples
Example -2
04-242-05
Light Manufacturing - 1 Story Metal Building with Office
1 Section – 2 Occupancies -with Components and Additions
16,637 SQFT
78
MicroSolve Commercial
Examples
Example -3
04-242-06
Motel - 1 Story Wood Structure
1 Section - 2 Occupancies
3,200 SQFT
79
MicroSolve Commercial
Examples
Example -4
04-242-07
New Office Building - 2 Story Brick Building
1 Section – 1 Occupancy – Elevator and Sprinklers
52,824 SQFT
80
MicroSolve Commercial
Examples
Example -5
04-242-08
Fitness Center - 1 Story Precast Panels
1 Section – 2 Occupancies – Finished Basement Area
25,154 SQFT
81
MicroSolve Commercial
Examples
Example -6
04-242-09
Warehouse Building with Office - 1 Story
1 Section – 1 Occupancy – Runs Income System
18,512 SQFT
82
MicroSolve Commercial
Examples
Example -7
04-242-10
Manufacturing Plant - 3 Buildings
3 Sections – 4 Occupancies
63,256 SQFT
83
MicroSolve Commercial
Examples
Example -8
04-242-11
Lumber Yard - 2 Main Buildings with 7 Lumber Sheds
3 Sections - 11 Occupancies 56,642 SQFT
84
MicroSolve Commercial
Examples
Example -9
04-242-12
Marriott Hotel - 1 House
1 Sections – 1 Occupancy – 3 Additions
51-191 SQFT
85
MicroSolve Commercial
Record to Enter – 04-242-13 and 14
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
10 ‘ Height – Office
20 ‘ Height – Service Repair Garage
Equip Bldg SQFT 2 = 3,200
Class D - Stud Wood Siding
EFF Age - 20
86
MicroSolve Commercial
Calculation Errors
87
MicroSolve Commercial
Calculation Errors
•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.
88
MicroSolve Commercial
Calculation Error Sample -1
The Most Common One
89
MicroSolve Commercial
Calculation Error Sample -2
90
MicroSolve Commercial
Calculation Error Sample -3
91
MicroSolve Commercial
Calculation Error Sample -4
92
MicroSolve Commercial
Land Cost System Error – Missing NBHD Code
93
MicroSolve Commercial
Income Approach
94
MicroSolve Commercial
Income Approach
•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.
95
MicroSolve Commercial
Income Approach
Town
Middlebury
Middlebury
Vergennes
Vergennes
Owner
Stone City
Scout Property
LewisburgLLC
Perron
Town
SaleDate
Bennington
Swanton
Essex Jct
Morrisonville
Middlebury
Middlebury
Listing
Listing
Listing
10/6/04
3/6/30
11/21/03
Apartment Sales
SaleDate SalePrice Units
10/25/2004 410000
3/1/2005 260000
4-Oct 212500
5-Jan 227000
SalePrice
Industrial
Acres
$995,000
$2,250,000
$2,950,000
$425,000
$725,275
$555,000
SQFT
7.84
13.69
18.32
4.10
4.65
4.28
Small Industrial (Less than 25,000)
Large Industrial
Rents
8
7
4
4
$/Unit
SQFT
$/SQFT
51250
5112
80
37143
4788
54
53125
3554
60
56750
3230
70
Type
28875 Industrial
85000 Industrial
77280 Industrial
32064 Industrial
11580 Comm/Indust
8320 Industrial/Light
$/Sqft
$34.45
$26.47
$38.17
$13.00
$62.63
$66.00
$60/Sqft
$30 - 50/Sqft
$3.50 / Sqft
96
MicroSolve Commercial
Income Approach
Town
Middlebury
Middlebury
Bristol
Barre City
Middlebury
Rutland City
Middlebury
SaleDate
Retail Sales
SalePrice
Acres
SQFT
10/4/04
$217,500
0.16
12/17/04
$415,000
0.04
12/1/04
$180,000
1.17
6/17/02
$275,000
0.48
5/15/01
$340,000
0.49
11/3/03
$675,000 Unknown
6/9/99
$604,000
0.15
Middlebury
4/14/05
$618,300
4.15
Middlebury
Vergennes
Vergennes
4/14/05
11/3/04
$281,700
$207,000
$215,000
0.70
0.03
0.07
Type
1896 Retail
4400 Retail
5547 Retail
6000 Retail
7422 Retail
10000 Retail
10728 Retail/Apt
10182 Lumber/Retail
4938 Lumber/Warehse
2316 2 Apt/Retail
6471 2 Apt/2Retail
$/SQFT
$114.00
$94.00
$32.00
$45.00
$45.80
$67.50
$56.00
$60.72
$57.00
$90.00
$56.00
Typical Value Approximately $50/Square Foot
Typical Value DownTown Approximately $100/Square Foot
Core Rents
$15 First Floor
$12 Upper Floor
$6 Below Grade
Outlying Rents
$12 First Floor
$10 Upper Floor
25 Percent Expenses
10 Percent Overall Cap Rate
97
Income Approach
MicroSolve Commercial
PROPERTY IDENTIFICATION
PARCEL ID
JO00490022
NAME
Leader Evaporator
PROP. DESC.
Wharehouse
Sale Price 1,600,000 10/2005
NEIGHBORHOOD
2
LAND - COST
$
283,900
BLDG - COST
$
1,588,259
RESIDUAL LAND:
$
VALUE-COST
$
1,882,200
OR
/SF
VALUE-INCOME
$
1,898,780
OR
/SF
FINAL VALUE
$
1,882,200
OR
-
/SF
VALUE/UNIT:
INCOME/EXPENSE INFORMATION
NET LEASABLE
78,172
SF
USE
UNIT OF
UNITS OR
ECONOMIC
COMPARISON
SIZE/SF
RENT/UNIT
ECONOMIC
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 UNITS
TOTAL INCOME
$
293,145
-
VAC. & CR. LOSS
5.0%
EXPENSE %
25.0%
CAP. RATE
11.00%
TAX LOAD
INCOME APPROACH VALUE INDICATIONS
INCOME APPROACH SUMMARY - ECONOMIC RENT
GROSS INCOME
$
293,145
VAC. & CR. LOSS
$
14,657
5.0%
EFF. GROSS INCOME
$
278,488
95.0%
EXPENSES (TOTAL)
$
69,622
25.0%
NET INCOME
$
208,866
OAR CAP
VALUE INDICATION
100.0%
75.0%
11.0%
$
1,898,780
RESIDUAL. LAND:
$
INDICATED VALUE:
$
1,898,780
98
MicroSolve Commercial
Income Approach
99
MicroSolve Commercial
Conclusions and Summary
100
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.
101