Conquer the CAS Challenge 2025 – Your Ultimate Actuarial Adventure Awaits!

When estimating the value of a commercial property, the age of the structure is a significant factor because it can impact both the physical condition and the potential functionality of the building. Older structures may require more maintenance, have outdated systems (such as electrical, plumbing, or HVAC), and may not meet current building codes or standards. This can reduce the property's market value compared to newer constructions that are likely to have up-to-date facilities and lower anticipated maintenance costs.

In addition, the age of the property can influence insurance premiums, mortgage terms, and buyer interest, all of which are critical elements in the property valuation process. While other factors like the number of employees on-site, distance from fire services, and location within the city may also play important roles in assessing a property's overall value, the direct contribution of age to observable wear and adaptability is often more immediately quantifiable and impactful in valuation assessments.