The Expectation Guide
Every estimate we show comes in three scenarios. Here is exactly what each one means, and the expected reclassification percentages for every property type we analyze.
Conservative
“a defensible lower share of the building basis moved to the 5 and 15 year lives.”
Middle of the Road
“the share a typical engineered study supports.”
Aggressive
“a higher share of the building basis moved to the 5 and 15 year lives that can still be supported on certain properties.”
Assumptions behind every table below:
- Percentages are of building basis excluding land.
- Include both 5-Year Personal Property and 15-Year Land Improvements.
- Assume bonus-eligible under current law.
- The three positions describe the building only. Land is carved out first and never depreciates, so the less of the price assigned to land, the more there is to depreciate: a low land value is the aggressive land position and a high land value is the conservative one.
Renovation projects are different: we classify your actual renovation invoices bottom-up at actual cost. The percentage tables below apply to whole-building acquisition estimates only. Start a renovation study →
Residential
Share of the building basis (price less land) moved to the 5 and 15 year lives
| Property Type | Conservative | Middle of the Road | Aggressive | Lane |
|---|---|---|---|---|
| Single-Family Rental (SFR) | 15% | 22% | 30% | Flat Fee |
| Duplex | 16% | 24% | 32% | Flat Fee |
| Triplex | 16% | 24% | 32% | Flat Fee |
| Four-Family | 16% | 24% | 32% | Flat Fee |
| Townhouse Rental | 15% | 22% | 30% | Flat Fee |
| Condominium Rental | 15% | 22% | 30% | Flat Fee |
| Airbnb / Short-Term Rental | 15% | 22% | 30% | Flat Fee |
| Vacation Rental | 15% | 22% | 30% | Flat Fee |
| Furnished Airbnb | 15% | 22% | 30% | Flat Fee |
| Furnished Executive Rental | 15% | 22% | 30% | Flat Fee |
| Furnished Vacation Rental | 15% | 22% | 30% | Flat Fee |
| Small Apartment (5-20 Units) | 18% | 25% | 34% | Extended / Custom |
| Large Apartment Complex | 20% | 28% | 38% | Extended / Custom |
| Luxury Apartments | 22% | 30% | 40% | Extended / Custom |
| Student Housing | 22% | 32% | 42% | Extended / Custom |
| Assisted Living Facility | 22% | 32% | 45% | Extended / Custom |
| Senior Housing | 20% | 30% | 40% | Extended / Custom |
| Mobile Home Park | 25% | 35% | 50% | Extended / Custom |
Commercial
Share of the building basis (price less land) moved to the 5 and 15 year lives
| Property Type | Conservative | Middle of the Road | Aggressive | Lane |
|---|---|---|---|---|
| Small Office Building | 15% | 22% | 30% | Flat Fee |
| Small Retail Building | 20% | 30% | 40% | Flat Fee |
| Strip Center (small) | 20% | 30% | 40% | Flat Fee |
| Warehouse (simple) | 10% | 18% | 28% | Flat Fee |
| Mixed-Use Building | 22% | 30% | 40% | Flat Fee |
| General Office | 15% | 22% | 30% | Extended / Custom |
| Medical Office | 20% | 28% | 38% | Extended / Custom |
| Corporate Headquarters | 18% | 25% | 35% | Extended / Custom |
| Retail Strip Center | 20% | 30% | 40% | Extended / Custom |
| Shopping Mall | 22% | 32% | 45% | Extended / Custom |
| Restaurant (Full Service) | 30% | 40% | 55% | Extended / Custom |
| Fast Food (QSR) | 35% | 50% | 65% | Extended / Custom |
| Hotel | 25% | 35% | 50% | Extended / Custom |
| Motel | 20% | 25% | 34% | Extended / Custom |
| Resort | 25% | 35% | 50% | Extended / Custom |
| Self Storage | 10% | 15% | 25% | Extended / Custom |
| Auto Dealership | 20% | 30% | 45% | Extended / Custom |
| Bank Branch | 20% | 32% | 40% | Extended / Custom |
| Car Wash | 50% | 70% | 90% | Extended / Custom |
| Gas Station / C-Store | 45% | 65% | 85% | Extended / Custom |
| Veterinary Facility | 22% | 32% | 45% | Extended / Custom |
| Manufacturing Facility | 20% | 30% | 45% | Extended / Custom |
| Food Processing | 25% | 40% | 60% | Extended / Custom |
| Cold Storage | 30% | 45% | 65% | Extended / Custom |
| Laboratory / R&D Facility | 25% | 35% | 50% | Extended / Custom |
| Distribution Center | 15% | 22% | 30% | Extended / Custom |
| Warehouse | 10% | 18% | 28% | Extended / Custom |
| Flex Industrial | 15% | 25% | 35% | Extended / Custom |
| Industrial Shell Building | 8% | 15% | 25% | Extended / Custom |
Specialty
Share of the building basis (price less land) moved to the 5 and 15 year lives
| Property Type | Conservative | Middle of the Road | Aggressive | Lane |
|---|---|---|---|---|
| Nursing Home | 22% | 32% | 45% | Extended / Custom |
| Hospital | 22% | 32% | 45% | Extended / Custom |
| RV Park | 32% | 42% | 60% | Extended / Custom |
| Daycare | 22% | 27% | 38% | Extended / Custom |
| Grocery / Supermarket | 25% | 32% | 40% | Extended / Custom |
| Funeral Home | 25% | 30% | 38% | Extended / Custom |
| Golf Course | 50% | 65% | 87% | Extended / Custom |
| Agricultural | 20% | 35% | 60% | Extended / Custom |
Variance disclaimer: read this part.
Real studies on similar buildings have ranged from 7% to 33% total: building-specific characteristics matter. Results are ranges, never guarantees.
Not tax or legal advice. Confirm implementation with your CPA.