Overview: When appraising specific property types, such as the health and fitness center described here, it is essential to not only learn about the real estate and structure, but also to learn about the region and slice of the market utilizing the space. 

Success:  We demonstrate our ability to see the big picture when approaching value by including our well-versed market knowledge and researching industry specific needs as seen in the excerpt below (taken from a recent health/fitness center appraisal in Lake County, Illinois): 

"The subject suffers from some deterioration, which is evidenced in photographs at the beginning of this report.  Functional obsolescence in the subject property is caused in part by the following factors: 

a.The pool area in proportion to the balance of the building is small and when compared with the success of other pools in the fitness market; this area is much smaller than what is really demanded. For example, with four lanes, only eight users can really swim at any one time.  This is against the number of fitness machines, elliptical machines and rowing machines, etc. that are available to cater to the size of the membership. 

b.The subject has an interior running track around the upper portion of the gymnasium.  However it is shaped in almost a rectangular form, the turns on the track are very tight and running over any long distance can play havoc on knees.  This could have been easily remedied by banking the track at the corners so that the runner is actually automatically compensated where both legs have equal pressure from the weight of the upper body.  It will not be long before the health center is treating runners for knee problems associated with these tight turns.  Had this facility been initially designed for the general public, this track would have never been constructed. Cardiovascular machines are so advanced that they now simulate most of the runner’s needs.  The newer fitness centers that keep up with public demand have and continue to construct gyms without any track and cater more extensively to their clientele so no time or space is wasted on a running track.  The subject is a facility trying to operate in the ‘for profit’ market, while catering to an older population who may simply never climb onto a walking machine."