Building Analysis: Description, Classification, and Measurement

Building Analysis: Description, Classification, and Measurement

Introduction
Building analysis is a crucial component of real estate site inspections, providing the foundation for valuation and investment decisions. It involves a systematic process of describing, classifying, and measuring the physical characteristics of a building. This chapter will delve into the scientific principles and practical applications of building analysis. Appraisers observe the components and characteristics of a subject property to identify their influence on property value in the market.

Building Description
A detailed building description is paramount in the valuation process. It provides the basis for comparing the subject property’s improvements with improvements that are considered typical in the subject property’s market and with the ideal improvements as determined in highest and best use analysis. An appraiser analyzes the design, layout, and construction details of the subject improvements, which include the structural components, materials, energy and water efficiency, and mechanical systems of each building under investigation. The appraiser also determines the size and the function, condition, and serviceability of each building element described. The growth of “green,” or high-performance, buildings is a good example of the changes that occur in all types of building uses.

Elements of a Building Description

An appraiser prepares a building description by considering a variety of specific information in sequence. Primary concerns include:

1. The type of use represented by the existing building
2. The codes and regulations affecting this use
3. Building size, plan, and construction
4. Details of the building’s exterior and interior and its equipment and mechanical systems (both those included in the original construction and in subsequent improvements)

I. Structural Components and Materials

A. Foundation:
1. Type: Slab-on-grade, crawl space, basement (full, partial).
2. Material: Concrete, reinforced concrete, masonry (brick, block).
3. Analysis: Assess for cracks, settling, moisture penetration, and overall structural integrity. Settlement can be quantified using surveying techniques and compared to acceptable tolerances based on soil type and foundation design.
B. Framing:
1. Type: Wood (stick-built, truss), steel, concrete.
2. Material: Dimensional lumber (species, grade), steel beams (grade, dimensions), reinforced concrete (mix design, rebar size and spacing).
3. Analysis: Evaluate for structural load capacity, deflection, and stability.

    The maximum bending stress in a beam can be calculated using the flexure formula:
        σ = M*y/I
    Where:
        σ = Bending stress
        M = Bending moment
        y = Distance from the neutral axis to the point where stress is calculated
        I = Area moment of inertia

  Calculate and analyze wind load and seismic resistance. Ensure that the structure complies with relevant building codes (e.g., International Building Code).

C. Exterior Walls:
1. Material: Brick, siding (vinyl, wood, fiber cement), stucco, concrete.
2. Analysis: Check for water damage, thermal bridging, insulation effectiveness, and aesthetic appeal. Measure the R-value (thermal resistance) of the wall assembly using the following formula:
R = d/k
Where:
R = Thermal Resistance
d = Thickness of the material
k = Thermal conductivity of the material
D. Roofing:
1. Material: Asphalt shingles, tile, metal, wood shakes.
2. Analysis: Assess for leaks, damage, lifespan, and insulation effectiveness. Evaluate the roof slope and drainage.
E. Windows and Doors:
1. Material: Wood, vinyl, aluminum, fiberglass.
2. Analysis: Evaluate for energy efficiency (U-factor, Solar Heat Gain Coefficient), air infiltration, and structural integrity. The U-factor measures the rate of heat transfer through a window or door.

II. Energy and Water Efficiency
A. Insulation:
1. Type: Fiberglass, cellulose, spray foam, rigid foam.
2. Location: Walls, ceilings, floors, attics.
3. Analysis: Check for proper R-value, installation, and air sealing.
B. HVAC Systems:
1. Type: Furnaces, air conditioners, heat pumps, boilers.
2. Efficiency: SEER (Seasonal Energy Efficiency Ratio), AFUE (Annual Fuel Utilization Efficiency), HSPF (Heating Seasonal Performance Factor).
3. Analysis: Assess energy consumption, maintenance history, and lifespan. Calculate the energy consumption using manufacturer specifications and operating hours.
C. Water Heating:
1. Type: Tank, tankless, solar.
2. Efficiency: Energy Factor (EF).
3. Analysis: Evaluate energy consumption, water usage, and lifespan.
D. Plumbing Fixtures:
1. Type: Toilets, faucets, showerheads.
2. Efficiency: WaterSense labeled.
3. Analysis: Assess water usage and potential for water conservation.
E. Renewable Energy Systems:
1. Type: Solar photovoltaic (PV), solar thermal, wind turbines.
2. Capacity: kW (kilowatts) for PV, BTU/hr (British Thermal Units per hour) for solar thermal.
3. Analysis: Evaluate energy production, cost savings, and return on investment. Calculate the energy production of a solar PV system using the following formula:
E = P * H * PR
Where:
E = Energy Production (kWh)
P = Rated Power of the PV Array (kW)
H = Average Annual Solar Irradiation (kWh/m²)
PR = Performance Ratio
III. Mechanical Systems
A. Electrical Systems:
1. Wiring: Copper, aluminum.
2. Panel: Amperage, capacity.
3. Analysis: Assess for safety, capacity, and compliance with electrical codes.
B. Plumbing Systems:
1. Piping: Copper, PVC, PEX.
2. Fixtures: Toilets, sinks, showers.
3. Analysis: Check for leaks, corrosion, and proper drainage.
C. Fire Protection Systems:
1. Sprinklers: Type, coverage.
2. Alarms: Smoke detectors, fire alarms.
3. Analysis: Assess for compliance with fire codes and effectiveness of fire protection.

Building Classification

Land uses can be divided into any number of types, depending on market norms and personal preferences. Traditionally, most appraisers have divided land uses into these major groups:

• Residential
• Office
• Retail
• Industrial
• Mixed use
• Agricultural
• Other specialized uses

I. Residential Classification

A. Single-Family Detached: A standalone residential structure not attached to other buildings, typically situated on its own lot.

B. Townhouse/Row House: A multi-story residential unit that shares one or more walls with adjacent units.

C. Condominium: A privately-owned individual unit within a multi-unit complex, with shared ownership of common areas.

D. Apartment: A rental unit within a multi-unit residential building.

II. Commercial Classification

A. Office Building: A structure primarily designed for administrative, professional, or clerical activities. These can be further categorized by class (A, B, C) based on factors like age, location, amenities, and rent levels.

B. Retail: Buildings used for the sale of goods or services. This includes:

   1.  Shopping Centers: Planned groupings of retail stores.
   2.  Stand-Alone Retail: Single-tenant retail locations.
   3.  Restaurants: Establishments providing food and beverage services.

C. Industrial: Buildings used for manufacturing, warehousing, or distribution.

   1.  Manufacturing Plants: Facilities used for the production of goods.
   2.  Warehouses: Buildings used for the storage of goods.
   3.  Distribution Centers: Facilities used for the efficient distribution of goods.

III. Zoning Regulations

Existing and potential land uses must be checked against zoning regulations to determine if they are conforming or nonconforming uses. When the present use does not conform to current zoning regulations, an appraiser should consider how this fact might affect property value.

Building Codes and Ordinances

In addition to any use restrictions imposed by zoning, the planning and construction of buildings are restricted by various laws, codes, and regulations enacted at all levels of government to protect the health, safety, and welfare of the public. Many states have codes that control the kinds of buildings that are built there. Federal regulations are established to ensure occupational health and safety, accessibility, environmental protection, pollution control, and consumer protection. Municipal building codes establish requirements for the construction and occupancy of buildings and may contain specifications for building materials, methods of construction, and mechanical systems.

Building Measurement

The methods and techniques used to calculate building size vary regionally, differ among property types, and may reflect biases that significantly affect opinions of value. An appraiser must know the measurement techniques used in the area where the building is located as well as those used to describe properties elsewhere. Measurement techniques applied in the assignment should reflect market norms for the property type in its market area.

I. Measurement Standards
Distinctions between gross building area, gross living area, usable area, and rentable or leasable area need to be clearly understood. Because the measurement of these areas varies based on local market practices, knowledge of such practices is important.

A. Gross Building Area (GBA): Total floor area of a building, measured from the exterior of the walls.
B. Gross Living Area (GLA): Total area of finished, above-grade residential space; calculated by measuring the outside perimeter of the structure and includes only finished, habitable, above-grade living space.
C. Gross Leasable Area (GLA): Total floor area designed for occupancy and exclusive use of tenants.
D. Net Rentable Area (NRA): The area available for rent, excluding common areas.

II. Measurement Techniques

A. Exterior Measurement: Measuring the perimeter of the building from the outside walls.
B. Interior Measurement: Measuring the interior dimensions of each room and adding them together.
C. Digital Measurement: Using laser measuring tools or software to calculate area.

III. Area Calculation

A. Rectangle: Area = Length * Width (A = L * W)
B. Triangle: Area = 0.5 * Base * Height (A = 0.5 * B * H)
C. Circle: Area = π * Radius² (A = π * r²)

D. Irregular Shapes: Divide the shape into smaller, measurable sections, calculate the area of each section, and sum the areas. CAD software tools can also be used to calculate the area of irregular shapes.

Conclusion

Building analysis is a multi-faceted process that requires a thorough understanding of construction principles, materials, energy efficiency, and measurement techniques. By applying scientific principles and best practices, appraisers can provide accurate and reliable building descriptions, classifications, and measurements, leading to sound valuation and investment decisions.