Reference no: EM133079101

Complete sales comparison approach using the following information and data:

• In your adjustment grid on the following page, round all adjustments to the nearest percentage.
• Include a + or - to indicate the direction of each adjustment.
• Make the market conditions adjustment first and independent of all other adjustments.
• At the end, add together the location/physical adjustments because they are cumulative (don't forget to consider the direction of adjustments).
• Not all items will require adjustment.
• Remember, comparables are adjusted to the subject, so a superior characteristic would be adjusted downward, and an inferior characteristic would be adjusted upward.

Subject property: 

312,000 SF warehouse

Sales A-D are all warehouses.

Market conditions adjustment

• Market conditions adjustments are applied before all the other adjustments, after which you should calculate a semi-adjusted $/SF before proceeding with the location/physical adjustments.
• Market conditions were stable from late 2019 until July 2020, when market conditions improved 30% due to demand for warehouse space for e-commerce. These conditions still exist today, in October 2021. Sales that took place prior to July 2020 sold during inferior market conditions.

Location adjustment

• Whitestown is considered to be 10% superior to Indianapolis.
• Greenwood is considered to be 15% inferior to Whitestown.
• Plainfield is considered to be 10% inferior to Whitestown.

Size adjustment

• Buildings in this market require a 1.5% adjustment per 10,000 SF of difference. Smaller buildings are considered superior, and larger buildings are considered inferior.

Age/condition adjustment

• An adjustment for age is 2% per year of difference. Older buildings are considered inferior, and newer buildings are considered superior.

Remember the market conditions adjustment is performed prior to location/physical adjustments. Location/physical adjustments are added up and can net each other out.

Last, present the range of adjusted $/SF and the indicated range of values in whole dollars, rounded to the nearest $10,000 for the subject building.