Interior Components: Space Division, Supports, and Finishes

Chapter Title: Interior Components: Space Division, Supports, and Finishes

Introduction

This chapter delves into the crucial interior components of a building: space division, supports, and finishes. Understanding these elements is paramount for appraisers, as they significantly influence a property’s functionality, marketability, and overall value. This chapter provides a comprehensive overview of each component, covering relevant scientific principles, practical applications, and potential issues that could affect a property’s appraisal.

1. Space Division

The division of space within a building dictates its utility and suitability for various purposes. Appraisers must carefully analyze the layout, room sizes, and overall space allocation to determine its impact on value.

1.1. Room Count and Functionality

• Room Inventory: A complete inventory of rooms and their designated uses is essential. The number of bedrooms and bathrooms, particularly in residential properties, heavily influences market appeal. For income-producing properties, the number of units, types of rooms, and their sizes determine the building’s revenue potential.
• Room Dimensions: Appraisers should consider stating room sizes as well as the number of rooms. Room size is very important to buyers.
• Space Optimization: Assess how efficiently space is used. Are hallways excessively long? Are rooms awkwardly shaped, limiting furniture placement? In industrial properties, the configuration of office suites affects value if it is not suitable to market participants.
• Flexibility: The arrangement of interior walls, particularly non-load-bearing ones, affects the building’s adaptability. Fewer load-bearing walls generally allow for greater flexibility in future space modifications.

1.2. Storage Areas

• Storage Adequacy: Storage space is a crucial consideration, particularly in kitchens, apartments, and homes without basements. In multifamily buildings, adequate storage increases property value.
• Storage Trade-Offs: Recognize that excessive storage space comes at the expense of living space. In a building with a fixed gross area, larger closets translate to smaller rooms. There is a trade off to closet size versus room size.
• Mini-Storage Facilities: The presence of mini-storage facilities near apartment complexes may indicate a demand for additional storage in the residential units.

1.3. Basements

• Valuation Considerations: Basement value depends on local market preferences. While a finished basement can add value equivalent to its depreciated cost in some regions, in others, the market may not fully recognize its value.
• Market Analysis: When a significant percentage of comparable properties have basements, it indicates market acceptance of this feature, supporting its inclusion in the appraised value.
• Condition Assessment: Dampness is a common basement problem. Look for signs like powdery white mineral deposits, stains on walls and columns, and mildew odors. Potential causes include poor foundation construction, inadequate drainage, and leaky windows.

1.4. Condominium Considerations

• Condominium Declaration: In condominium appraisals, the declaration defines unit boundaries, limited common elements, and common elements. It also specifies the percentage of ownership in the common elements.

2. Interior Supports

Interior supports are critical for maintaining structural integrity and distributing loads.

2.1. Types of Interior Supports

• Beams, Columns, and Trusses: These elements are used in buildings with basements or crawl spaces too wide for floor joists to span without additional support. They transfer loads from upper floors and the roof to the foundation. As interior support systems, traditional joist construction is being replaced by both roof and floor truss systems.
• Flooring System: This system comprises subflooring, joists, and bridging. The subflooring provides a base for finished flooring, while joists carry the floor load. Bridging stiffens the joists and prevents deflection.

2.2. Material Properties and Structural Principles

• Material Strength: The choice of material (wood, steel, concrete, masonry) depends on load requirements and design considerations. Each material has a specific tensile strength (σ_t), compressive strength (σ_c), and modulus of elasticity (E), which are crucial for structural calculations.

• Beam Deflection: The deflection (δ) of a beam under a load (P) is governed by the following equation:

  δ = (P * L³) / (48 * E * I)

  Where:
  * L is the length of the beam
  * E is the modulus of elasticity of the beam material
  * I is the area moment of inertia of the beam’s cross-section
  * Column Buckling: Columns are susceptible to buckling under compressive loads. Euler’s formula defines the critical buckling load (P_cr):

  P_cr = (π² * E * I) / (L²)

  Where:
  * L is the effective length of the column

2.3. Structural Integrity and Potential Issues

• Visual Inspection: Appraisers should visually inspect beams and columns for signs of cracking, sagging, or deterioration. These indicate potential structural problems.
• Load Capacity: Ensure that the support system is adequate for the building’s intended use. For example, industrial buildings may require reinforced floors to support heavy machinery.
• Compliance with Codes: Interior supports must comply with local building codes regarding load-bearing capacity and fire resistance.

3. Interior Finishes

Interior finishes affect aesthetics, functionality, and indoor air quality.

3.1. Walls and Partitions

• Residential: Common materials include wood studs covered with drywall (gypsum board), wood panels, ceramic tile, plaster, masonry, structural insulated panels (SIPs), and insulated concrete forms (ICFs).
• Commercial: Materials range from wire partitions and glass to wood, plywood, hardboard, metals, tile, concrete, and solid masonry (for fire protection).
• Partitions: Partitions are typically non-load-bearing and often movable, providing flexibility in space division.
• Surface Treatments: Interior walls can be painted, papered, or finished with other decorative materials.

3.2. Ceilings

• Materials: Ceilings can be made of drywall, plaster, suspended panels (drop ceilings), or the underside of the upper floor structure.
• Ceiling Height: Appraisers should measure and consider ceiling height, because ceilings that are too high or too low for the property’s current highest and best use as improved may be considered items of functional obsolescence and decrease the property’s value.

3.3. Flooring and Floor Coverings

• Base Materials: Materials include sand, compressed dirt, bituminous paving, brick, stone gravel, concrete, and similar products. These are common in industrial buildings, warehouses, garages, and basements.
• Finished Flooring: Options include terrazzo flooring, wood planks, hardwood strips, resilient flooring (vinyl, asphalt, or laminate), ceramic tile, stone, quarry tiles, and carpeting. The choice of material depends on the building type, traffic, and design aesthetic. In many commercial and industrial buildings, floors must be especially thick or reinforced to support heavy equipment.

3.4. Doors

• Types: From simple hollow-core doors in residential buildings to solid-core doors in older buildings and commercial properties, doors provide security and access control. Commercial and industrial buildings may have complex, self-closing, fire-resistant doors or specialty self-opening doors.
• Installation Quality: Poorly hung doors that do not close properly can detract from a property’s appeal.

3.5. Stairs, Ramps, Elevators, Escalators, and Hoists

• Safety and Accessibility: Stairs and ramps should provide safe access between levels, with adequate headroom and railings. Local building codes dictate minimum and maximum tread and rise of stairs, which should be consistent within a building.
• ADA Compliance: The Americans with Disabilities Act (ADA) mandates accessibility standards for public buildings, which may require ramps, elevators, or other modifications. Non-compliance can negatively impact property value. Public buildings may also have to be barrier-free to provide access for handicapped people as mandated by the Americans with Disabilities Act of 1990 (ADA), which may require that ramps be installed both inside and outside the structure.
• Elevator and Escalator Efficiency: In multistory buildings, assess the efficiency of elevators and escalators in moving people and freight. Inadequate systems can diminish value.
• Special Elevators and Hoists: These are often considered part of the building, particularly in industrial settings.

3.6. Painting, Decorating, and Finishing

• Condition Assessment: Report the condition of painting and decorating, noting when redecoration is needed.
• Subjectivity: The attractiveness of painting and decorating is subjective. Unusual decorations and colors may limit market appeal.
• Basement Finishes: Finished basements used for purposes other than storage can significantly increase property value, but must be typical for the area.
• Flooring Considerations: Appraise floor coverings based on durability and how well they match the building’s design.
• Green Building Finishes: Green buildings utilize low- or no-VOC paints and floor coverings, which improve indoor air quality.
• Fireplaces: Fireplaces are a nice feature, but many have little heating power, and one common problem is downdraft, whereby smoke is blown into the building by the wind outside. This can happen if the chimney does not extend at least 2 feet above any part of the roof within 10 feet of the chimney.

4. Protection Against Decay and Insect Damage

• Wood Vulnerability: All wood is susceptible to decay and insect damage, especially when exposed to moisture.
• Preventative Measures: Builders use several techniques to protect against decay and insect damage:
  • Sloping the ground away from foundations for good drainage and putting vapor barriers on the interior sides of exposed walls.
  • Using polyethylene as a soil cover in crawl spaces.
  • Flashing, gutters, downspouts, and splash blocks to carry water away from foundation walls.
  • Using poured concrete foundation walls, concrete caps over unit masonry foundations, wood treatments, soil treatments, or metal termite shields.
• Termite Control: Termites are a significant threat, requiring specialized treatments to eradicate infestations.
• Maintenance: Regular inspections and maintenance are critical for preventing infestations and damage.
• Irrigation: Poorly aimed lawn irrigation systems can cause significant damage if water accumulates against the foundation or is directed at exterior walls.

5. Miscellaneous and Special Features

• Equipment Categories: In industrial and commercial properties, distinguish between:
  • Equipment for human comfort (plumbing, HVAC, lighting)
  • Process-related fixed building equipment (air hoses, process piping, craneways, etc.)
• Limited-Market Properties: Properties with specialized features (steel mills, oil refineries, amusement parks) may require additional research due to limited data.

6. Personal Property

• Identification: Appraisers must identify and distinguish between real property and personal property (furniture, fixtures, and equipment – FF&E).
• Inclusion/Exclusion: The appraisal report must clearly state whether personal property is included in the ownership interest. Examples include hotel furnishings, convenience store equipment, and nursing home equipment.
• Solar Systems: Leased solar photovoltaic systems should not be included in the real estate value, as they are personal property.

7. Equipment and Mechanical Systems

• Major Systems: Major equipment and mechanical systems include plumbing, HVAC, and electrical systems.
• Plumbing System: The plumbing system consists of supply, waste, and vent piping and fixtures. Galvanized steel, lead, or brass pipes in older buildings may need to be replaced.

Conclusion

A comprehensive understanding of interior components – space division, supports, and finishes – is crucial for accurate property appraisal. By applying scientific principles, conducting thorough inspections, and considering market factors, appraisers can effectively assess the value and potential of any building.