Functional Utility

[MAIorBust]

It seems fairly obvious when a property has poor functional utility but what would characterize a property as having good functional utility? All but a few commercial projects I have worked on, have been given an average designation when running my Sales Comparison Approach. I would like to hear a few examples on what you think would make F.U. good.....thanks!

 

[The Warrior Monk]

Here are some examples seen in many of the homes I appraise:

• All bedrooms have their own private bathroom;
• A half bathroom is located proximate to the foyer for guest use;
• Kitchen has dining area, as well as a separate formal dining room.
• Entertaining areas are separate from guest areas; e.g., bedrooms are located in another section of the home, and do not open to the public areas.

 

[MAIorBust]

Here are some examples seen in many of the homes I appraise:

• All bedrooms have their own private bathroom;
• A half bathroom is located proximate to the foyer for guest use;
• Kitchen has dining area, as well as a separate formal dining room.
• Entertaining areas are separate from guest areas; e.g., bedrooms are located in another section of the home, and do not open to the public areas.

Thanks for the reply David, however I will probably never appraise a home in the near future. I hope some of the commercial guys will chime in. My mentor was even a little stumped on this one.

 

[Betty H Church]

Office adjacent to potty, breakroom, and window view

 

[Financially Feasible]

Having never appraised a commercial building... I am not a good responder on this one. However, I may be able to help facilitate the thread!

I would imagine that every different type of commercial property type has a different definition of "functional utility". What kind of commercial property are we talking about - office buildings? hotels? shopping malls? restaurants? I'm guessing that the CGs/MAIs on the forum would be able to answer your question more efficiently if you specified a type. If you can classify functional utility on commercial properties without identifying a type, then I will take my little 'ol certified residential self back into hiding... :laugh:

 

[The Warrior Monk]

I missed the fact that it was a commercial property. The answer can't be answered without knowing the use. An excellent design for one use is a very poor one for another use.

 

[Mark to market]

The Appraisal of Real Estate has a few thoughts starting on p 254

 

[ZZGAMAZZ]

This is an excellent question for residential properties as well (Thread Stealing...)

SFR with a 1st floor bed/bath, in a 2-story house ,in a neighborhood of 2 story units with all 2nd floor bedrooms.

SFR with 1 story, with an attached guest wing with its own bed/bath, with private egress as well as access to the main unit, so it can function as a casita but be included in the GLA?

 

[MAIorBust]

It is a 8,000 square foot research and development building. Around 2,300 of it is finished office space. We (my mentor) thinks it has an average functional utility however I can't see how it could get any better. Thanks for the replies and I will do some more research myself. Feel free to thread steal, after I think I get a decent grasp on the commercial side I want to learn more on the residential side for my own personal investments. I throughly enjoy your topics and comments.

 

[Mark to market]

In mixed use buildings, each type of use has its own design criteria

Here are some generic answers from the 12th edition

Mixed use buildings
Column spacing
bay depth
live load capacity
ceiling height
module width
elevator speed
level of finish
energy efficiency
parking
appropriate density for market area ( low, medium or high rise)
building shape and size
flexible and efficient use of space
expansion capabilities
HVAC, pluming electrical, security and communications systems
floor to floor heights
facade and interior and exterior signage
attractive streetscape and landscaping
access to lobbies an public space
vertical transportation
amenities, restaurants, fitness centers, day care facilities