In a recent Wall Street Journal article, Boston Properties Inc. Executive VP Raymond Ritchey pointed out, “...The millennial generation [is] moving out of the cities, forming households, having children, looking for better schools and that's going to drive rate demand in the suburbs.” Want to know how to predict the future? Follow the hype and say the opposite [...]
Last week we discussed physical depreciation. This week we will focus on the other components of depreciation: functional and external. Functional depreciation, sometimes called functional obsolescence, addresses inadequacies or superadequacies within the property. Here's an easy example. Compare a house built in 1914 to a house built in 2014. Here are some of the differences [...]
"C'mon Bob, it's only a little lot. Why do you need so much time? And why is the fee so high? It's only two acres and it's used to park ice cream trucks. Why is that such a big deal?" Because land is hard. Let's start with the Highest and Best Use. It's probably not parking [...]
