Function obsolescence is a word that's used to describe something that's outlived its usefulness. Commonly actually, it's used in Real Estate to explain when properties have not been upgraded year on year and ended up leading to a much older effective age of the property, and a lower appraisal value, because a lot of the items are going to have to be upgraded over time. The reason I'm bringing it up in today's episode is we always tell people to plan for functional obsolescence. Let's use Commercial Real Estate for an example. So say you're doing a new build or there's a large component of your commercial investment that needs to be upgraded. Sometimes, just doing the bare minimum isn't enough. You need to plan for what that property's use is going to be in the next 10-15, to 20 years. If you thing from a Commercial Real Estate standpoint, you gotta think electrical systems are gonna change, tenant needs are gonna change so always look to the future. Don't always just do the bare minimum.
Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”