This property is comprised of a concrete block-framed light industrial development with 18 commercial units in two buildings. It is being leased out by a private owner. The exterior cladding features concrete blocks, cultured stone, wood, and glass panels. Some units also have skylights. 

The appraisal team must figure out what is included for the appraisal report when we go on the site inspection. The owners often leave commercial units as a shell finish, which is just the bare structure with minimal finishing, pre-wired or basic HVAC, electrical, and plumbing systems. As tenants rent out spaces, they put in their own betterments and improvements for the units. We need to determine what is included for the replacement cost for the owner and the remaining improvements are under the tenant’s responsibility. Difficulties arise when tenants leave behind significant equipment such as rooftop HVAC units, plumbing, fire safety equipment and interior finishes such as wall partitions and flooring.