MicroSolve Commercial

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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
  MS -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 MS
• 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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• Additions allow for additional value for items
  not included in the Cost system.

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• 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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MicroSolve Commercial

• 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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MicroSolve Commercial

• 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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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

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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.
• Income Approach
• Converts anticipated benefits (dollars) to be
  derived from ownership into a value estimate.

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MicroSolve Commercial

• Cost Approach and Value
• Replacement Cost
• Total cost of building construction required to
• Replace the subject building.
• Substitute with like or equal utility.
• Using current standards of materials and design
• Reproduction Cost
• Total 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 buildings
• Actual replacement may not be available or
  desirable.
• 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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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
• Direct Costs (labor, materials, equipment, fees
  and charges)
• Indirect Costs (overhead, permits, financing,
  selling expenses)
• Profit.

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MicroSolve Commercial

• Cost Approach and Value
• Cost Approach
• Based 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

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MicroSolve Commercial

• Marshall and Swift Concepts

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MicroSolve Commercial

• Marshall and Swift Methods and Terms
• Calculator 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.

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• Section Information

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• 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 
•  

• 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).

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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
• One Building - One Section
• Small Satellite Bank Building
• Simple Example
• One Section
• One Occupancy-Bank
• Two Additions

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MicroSolve Commercial

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

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MicroSolve Commercial

• Section
• Section Example - 3
• Two Buildings Two Sections on same Property
• Manufacturing Building
• Restaurant Building with Retail and apartment.
• More Complex Example
• 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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MicroSolve Commercial
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

• The entries for this building are
• Section 1
• Story/Section __6__ Building ____
•  
• Section 2
• Story/Section __3__ Building ____
•  

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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 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__

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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 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
1Square 2Rectangular or Slightly Irregular 3Irregular 4Very Irregular
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MicroSolve Commercial
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.
• System documentation regarding base date and
  effective age has changed.
• 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.

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MicroSolve Commercial
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.
• MS 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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MicroSolve Commercial
Depreciation

• Example
• Retail/Office Building
• Class C , Average Quality
• 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 Lookup
Year Built Effective Age Yes
Effective Age Effective Age Yes
Overall Depr No Age No
Physical Depr No Age No
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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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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 Class Height Rank
50 Retail Store 40 D 10 2
34 Laundromat 60 D 14 2
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MicroSolve Commercial
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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MicroSolve Commercial
Occupancy Codes in MicroSolve and MS More than
150
CAMA Name MS Code
CAMA Name MS Code
Code Name Val Code Name Val
0 NoData 0 51 ArtCrftsBl 355
1 Apartment 300 52 ClassrmsEl 356
2 Armory 301 53 CommonsEle 357
3 Auditorium 302 54 GymEleSecS 358
4 AutoShowRm 303 55 LectClssrm 359
5 Bank 304 56 MediaCntrE 360
6 Barn 305 57 ManualArts 361
7 BowlingAll 306 58 MultipurpB 362
8 ChurchWSun 308 59 PhysEdBldg 363
9 Church 309 60 SciClassrm 364
10 CityClub 310 61 EleSchoolE 365
11 Clubhouse 311 62 JrHghSchoo 366
12 Convalesce 313 63 ArtsCrftsB 367
13 CountryClu 314 64 ClassrmsCo 368
14 Creamery 315 65 CommonsCol 369
15 Dairy 316 66 GymCollege 370
16 DairySales 317 67 LectHallCo 371
17 DeptStore 318 68 LibrryColl 372
18 DiscountSt 319 69 TechTradeB 373
19 Dispensary 320 70 MultipurpB 374
20 Dormitory 321 71 PhysEdBldg 375
21 FireStnSta 322 72 SciBldgCol 376
22 FratBldg 323 73 CollegeEnt 377
23 FratHse 324 74 Stable 378
24 ServGrgObs 325 75 TheatersLi 379
25 StorGarage 326 76 TheatersCi 380
26 GovBldg 327 77 VetrnryHos 381
27 StorHangar 328 78 TobaccoBar 383
28 HangarMain 329 79 BarberShop 384
29 HomeForThe 330 80 MiniWareho 386
30 Hospital 331 81 TransWareh 387
31 Hotel 332 82 UndrgrndPa 388
32 IndManufac 334 83 EquipStorB 389
33 CorrFacili 335 84 LumberStor 390
34 Laundromat 336 85 MaterlStor 391
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Occ Code Occ Name Class Height Rank
50 Retail Store 40 D 10 2
34 Laundromat 60 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
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Class
Occ Code Occ Name Class Height Rank
50 Retail Store 40 D 10 2
34 Laundromat 60 D 14 2

• Class of Construction
• 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

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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 Occ Name Class Height Rank
50 Retail Store 40 D 10 2
34 Laundromat 60 D 14 2
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)

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• 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 Class Height Rank
44 Post Office 33 D 18 2
5 Bank 67 D 10 2
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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

Occ Code Occ Name Class Height Rank
5 Bank 100 D 12.67 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

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Rank
Occ Code Occ Name Class Height Rank
50 Retail Store 40 D 10 2
34 Laundromat 60 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
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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 MVS Commercial Manual
Examples Using MVS Commercial
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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 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.
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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 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.
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Wall Definitions Descriptions for exterior
walls (See back section of manual) MASONRY
WALLS CAMA Pre-Code MN (MS 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 (MS 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 (MS
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 (MS 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
(MS Codes 910-929) Refers to a wall enclosure
that is typically applied over an open skeleton
prefabricated metal or wood pole framed building.
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• 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 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.

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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 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.
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Components Summary Chart
Component Type Units
HVAC Square feet of floor area served Percentage of total floor area served
Exterior Walls N/A Percentage 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 elevators N/A
Sprinklers Square feet of floor area served Percentage of total floor area served
Mezzanines Square feet of mezzanine area N/A
Balconies Square feet of balcony area N/A
Malls Square feet of mall area N/A
Fire Alarm Systems Square feet of floor area served Percentage of total floor area served
Land Value (Site Value) Dollar amount N/A
Site Improvements Dollar amount N/A
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Additions
MicroSolve Commercial
Additions allow the inclusion of items to the
report that are not available in the MS CAMA
program.
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Additions
Report Headings indicates where to print the
addition in the report, using one of the
following codes
Basic Basic Structure Cost - Depreciated
Super Superstructure Cost - Depreciated
Bsmnt Basement Cost
Extra Extras
Depr Depreciation (prints as negative)
Tot Bldg Total Value Added to Building Not Depreciated

• Examples
• Porches or Decks
• Tanks
• Canopy
• Storage Buildings

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• 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
Irregular
Basement Occupancy Class
Type 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
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Basement
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.
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Basement Cost Report
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Examples
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Examples
Example -1 04-242-04 Retail/Apartments - 3
Story Brick Building 1 Section 2 Occupancies
Unfinished Basement 10,557 SQFT
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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
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Examples
Example -3 04-242-06 Motel - 1 Story Wood
Structure 1 Section - 2 Occupancies 3,200 SQFT
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Examples
Example -4 04-242-07 New Office Building - 2
Story Brick Building 1 Section 1 Occupancy
Elevator and Sprinklers 52,824 SQFT
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Examples
Example -5 04-242-08 Fitness Center - 1 Story
Precast Panels 1 Section 2 Occupancies
Finished Basement Area 25,154 SQFT
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Examples
Example -6 04-242-09 Warehouse Building with
Office - 1 Story 1 Section 1 Occupancy
Runs Income System 18,512 SQFT
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Examples
Example -7 04-242-10 Manufacturing Plant - 3
Buildings 3 Sections 4 Occupancies 63,256 SQFT
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Examples
Example -8 04-242-11 Lumber Yard - 2 Main
Buildings with 7 Lumber Sheds 3 Sections - 11
Occupancies - 56,642 SQFT
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Examples
Example -9 04-242-12 Marriott Hotel - 1 House 1
Sections 1 Occupancy 3 Additions 51-191 SQFT
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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 Equip Bldg SQFT 2
3,200 Class D - Stud Wood Siding EFF Age -
20
10 Height Office
20 Height Service Repair Garage
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• Calculation Errors

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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.

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Calculation Error Sample -1
The Most Common One
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Calculation Error Sample -2
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Calculation Error Sample -3
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Calculation Error Sample -4
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Land Cost System Error Missing NBHD Code
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Income Approach
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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.

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Income Approach
Apartment Sales Apartment Sales
Town Owner SaleDate SalePrice Units /Unit SQFT /SQFT
Middlebury Stone City 10/25/2004 410000 8 51250 5112 80
Middlebury Scout Property 3/1/2005 260000 7 37143 4788 54
Vergennes LewisburgLLC 4-Oct 212500 4 53125 3554 60
Vergennes Perron 5-Jan 227000 4 56750 3230 70

Industrial
Town SaleDate SalePrice Acres SQFT Type /Sqft
Bennington Listing 995,000 7.84 28875 Industrial 34.45
Swanton Listing 2,250,000 13.69 85000 Industrial 26.47
Essex Jct Listing 2,950,000 18.32 77280 Industrial 38.17
Morrisonville 10/6/04 425,000 4.10 32064 Industrial 13.00
Middlebury 3/6/30 725,275 4.65 11580 Comm/Indust 62.63
Middlebury 11/21/03 555,000 4.28 8320 Industrial/Light 66.00


Small Industrial (Less than 25,000) Small Industrial (Less than 25,000) Small Industrial (Less than 25,000) Small Industrial (Less than 25,000) 60/Sqft
Large Industrial Large Industrial 30 - 50/Sqft 30 - 50/Sqft



Rents 3.50 / Sqft 3.50 / Sqft

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Income Approach
Retail Sales Retail Sales
Town SaleDate SalePrice Acres SQFT Type /SQFT
Middlebury 10/4/04 217,500 0.16 1896 Retail 114.00
Middlebury 12/17/04 415,000 0.04 4400 Retail 94.00
Bristol 12/1/04 180,000 1.17 5547 Retail 32.00
Barre City 6/17/02 275,000 0.48 6000 Retail 45.00
Middlebury 5/15/01 340,000 0.49 7422 Retail 45.80
Rutland City 11/3/03 675,000 Unknown 10000 Retail 67.50
Middlebury 6/9/99 604,000 0.15 10728 Retail/Apt 56.00
Middlebury 4/14/05 618,300 4.15 10182 Lumber/Retail 60.72
Middlebury 4/14/05 281,700 0.70 4938 Lumber/Warehse 57.00
Vergennes 11/3/04 207,000 0.03 2316 2 Apt/Retail 90.00
Vergennes 215,000 0.07 6471 2 Apt/2Retail 56.00

Typical Value Approximately 50/Square Foot Typical Value Approximately 50/Square Foot Typical Value Approximately 50/Square Foot Typical Value Approximately 50/Square Foot
Typical Value DownTown Approximately 100/Square Foot Typical Value DownTown Approximately 100/Square Foot Typical Value DownTown Approximately 100/Square Foot Typical Value DownTown Approximately 100/Square Foot Typical Value DownTown Approximately 100/Square Foot


Core Rents 15 First Floor
12 Upper Floor Upper Floor
6 Below Grade Below Grade


Outlying Rents 12 First Floor
10 Upper Floor Upper Floor

25 Percent Expenses 25 Percent Expenses
10 Percent Overall Cap Rate 10 Percent Overall Cap Rate 10 Percent Overall Cap Rate

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Income Approach
  PROPERTY IDENTIFICATION PROPERTY IDENTIFICATION PROPERTY IDENTIFICATION    
   
PARCEL ID JO00490022        
NAME Leader Evaporator        
PROP. DESC. Wharehouse Sale Price 1,600,000 10/2005 Sale Price 1,600,000 10/2005    
NEIGHBORHOOD 2        
LAND - COST 283,900   RESIDUAL LAND RESIDUAL LAND -
BLDG - COST 1,588,259        
VALUE-COST 1,882,200 OR   /SF  
VALUE-INCOME 1,898,780 OR   /SF  
FINAL VALUE 1,882,200 OR   /SF  
      VALUE/UNIT VALUE/UNIT  
   
  INCOME/EXPENSE INFORMATION INCOME/EXPENSE INFORMATION INCOME/EXPENSE INFORMATION  
   
NET LEASABLE 78,172 SF  
  UNIT OF UNITS OR ECONOMIC ECONOMIC
USE COMPARISON SIZE/SF RENT/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. LOSS 5.0  
EXPENSE 25.0  
CAP. RATE 11.00  
TAX LOAD    
   
  INCOME APPROACH VALUE INDICATIONS INCOME APPROACH VALUE INDICATIONS INCOME APPROACH VALUE INDICATIONS INCOME APPROACH VALUE INDICATIONS  
   
INCOME APPROACH SUMMARY - ECONOMIC RENT INCOME APPROACH SUMMARY - ECONOMIC RENT INCOME APPROACH SUMMARY - ECONOMIC RENT  
   
GROSS INCOME 293,145 100.0  
VAC. CR. LOSS 14,657 5.0  
EFF. GROSS INCOME 278,488 95.0  
EXPENSES (TOTAL) 69,622 25.0  
NET INCOME 208,866 75.0  
OAR CAP 11.0 RESIDUAL. LAND RESIDUAL. LAND -
VALUE INDICATION 1,898,780   INDICATED VALUE INDICATED VALUE 1,898,780
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Income Approach
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Conclusions and Summary
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• 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.