Empirical analysis of the breakdown method of estimating physical depreciation.

From: Appraisal Journal | Date: April 1, 1998| Author: Wolverton, Marvin L. | Copyright information

An analysis of 2,465 observations of Seattle apartment rents over a 10.5-year period reveals that it is possible to discern the pattern of apartment property depreciation from market data. In Seattle, apartment rents (hence values) declined relatively rapidly over the first 20 years of a property's life, and the rate of depreciation in rents became more gradual as properties aged beyond 20 years. The findings are shown to be consistent with the breakdown method of estimating physical deprecia...

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