Total Component Methodology

How does Commercial Express value a building? The system starts with the location (zip or postal code). Commercial Express uses this information to account for the climatic, seismic zone and high wind zone requirements of the building. All three of these location-sensitive issues have an effect on a building’s design and, therefore, the cost of the building. The correct labor rates and material costs are also based on the zip or postal code.

The construction type determines the structure of the building and it is probably the most important bit of information that you enter. This information dictates the framing system to be used as well as the structural floors and roof. For example, if frame is selected as the construction type, the exterior walls, bearing walls, partitions, structural floors and roof will be constructed of wood or light-gauge steel. The construction of this “shell” will meet the requirements for the specific zip or postal code entered. For more detail on the specific construction types, see Construction Type.

The final piece of the total component concept is the occupancy. The occupancy that you enter determines the “build-out” of the shell that you defined by the construction type and location. For example, a frame apartment occupancy would employ frame construction for the walls, structural floors and roof, have suitably fenestrated exterior walls, and include finishes, building services, and miscellaneous features compatible with frame construction and appropriate for an apartment. More specifically, the structural assemblies would be of dimensional lumber or light-gauge steel members. The outer walls would contain an adequate number of entrance doors and slide-by or double-hung windows. There would be numerous partitions finished with drywall, carpet, and vinyl as floor finishes, drywall as a ceiling finish, residential lighting fixtures and receptacles, baseboard heat, a full complement of residential plumbing fixtures, kitchen and bath cabinets, and other sundry features such as closet shelving and clothes poles, storage lockers, mailboxes, and an intercom system.

In summary, the total component concept constructs a building component by component, meeting the requirements for the specific location, the construction type, and the stated occupancy. Listed below are specifics regarding what is and is not included in the cost data.

Commercial Occupancies

Construction Type

To distinguish different construction materials and assemblies, their corresponding cost differences, and their fire-related characteristics, CoreLogic uses the following construction types:

Frame - A building in which the exterior walls, bearing walls and partitions, and the structural floors and roof and their supports are wood or light-gauge metal. This includes buildings in which the wood or light-gauge metal has been combined with other materials to form composite components such as wood or metal studs with brick or stone veneer, stucco, or metal siding. Buildings classified as ISO Class 1 - Frame are characteristic of this type.

Masonry - A building that has the exterior walls constructed of masonry materials such as brick, hollow or solid concrete block, concrete, gypsum block, clay tile, stone, or similar materials. The structural floors and roof are wood or light-gauge metal. Buildings classified as ISO Class 2 - Joisted Masonry are characteristic of this type.

Pre-Engineered Metal - A building that employs a system of pre-engineered rigid steel framing members. The exterior walls are metal siding, sandwich panels, or masonry, and the roof is clad with metal roofing or sandwich panels. Buildings classified as ISO Class 3 - Non-Combustible are characteristic of this type.

Steel Frame - A building in which the structural floors and roof are unprotected noncombustible materials such as metal decking or concrete on metal decking and are supported by an unprotected structural steel frame, fire resistive exterior walls, or a combination of both. Buildings classified as ISO Class 4 - Masonry Non-Combustible are characteristic of this type.

Protected Steel Frame - A building in which the structural floors, roof, and their supports are of noncombustible construction with a fire rating of not less than one hour. A building very similar to steel frame; however, in protected steel frame, the noncombustible floor, roof, and framing components are protected with sprayed-fiber fireproofing. Buildings classified as ISO Class 5 - Modified Fire Resistive are characteristic of this type.

Reinforced Concrete Frame - A building in which the structural floors and roof and their supports are of materials such as precast or poured-in-place reinforced concrete with a fire resistive rating of not less than two hours. Buildings classified as ISO Class 6 - Fire Resistive are characteristic of this type.

When determining the construction type of a basement, consider only its structural components, not those of the main building. For a basement to be classified as frame, both the structural floor and the exterior walls must be of frame construction. If the walls are of noncombustible materials such as poured concrete or concrete block and the structural floor is of frame construction, the basement is masonry construction. If the structural floor and the walls of the basement are of frame construction, such as in a permanent wood foundation (PWF), it is a frame structure.

What Is Included in a Commercial Occupancy

The following items are included in the cost data:

  1. Appropriate type and adequate number of doors and windows
  2. Architectural and engineering fees
  3. Builders' risk insurance
  4. Building permits
  5. Building services in accordance with energy conservation guidelines
  6. Built "slab on grade"
  7. Compliance with ADA requirements, national building codes, and model energy code standards
  8. Contractors' overhead, both general and job
  9. Contractors' profit
  10. Emergency lighting
  11. Excavated soil removed from site
  12. Exterior cladding, interior finishes, and building services appropriate to specific occupancy and construction type
  13. Field supervision
  14. Foundation per climatic requirements
  15. Ideal building site (level, free of obstructions, accessible, adequate space to allow for the staging of materials and the movement of construction personnel and equipment)
  16. Insulating qualities to meet model energy code standards
  17. Public liability insurance
  18. Sales tax on materials and labor where applicable
  19. Site surveys and building layout
  20. Social Security and Medicare
  21. Structural systems designed to meet the needs of specific occupancies in accordance with national building codes
  22. Unemployment tax
  23. Utility laterals to 10 feet outside of building perimeter
  24. Workers' compensation and employers’ liability insurance

What Is Not Included in a Commercial Occupancy

The following items are not included in the cost data:

  1. Any costs associated with the procurement and/or development of the land on which the structure is built including but not limited to:
  • Acquisition loan costs
  • Hook-up, tap, or entitlement fees
  • Impact fees
  • Legal fees
  • Property taxes
  • Real estate commissions
  • Right-of-way costs
  • Site remediation
  1. Appliances
  2. Balconies
  3. Canopies
  4. Central vacuum systems
  5. Clean rooms
  6. Computer room air conditioning
  7. Construction finance charges
  8. Construction management fees
  9. Conveyors
  10. Curbs and gutters
  11. Debris removal
  12. Decks
  13. Demolition
  14. Dock levelers
  15. Driveway
  16. Dumbwaiters
  17. Elevators
  18. Emergency electrical generators, unless otherwise noted
  19. Escalators, unless otherwise noted
  20. Fences
  21. Fire protection/detection/suppression systems
  22. Fireplaces
  23. Fuel oil storage tanks
  24. Furniture
  25. Heating plant stack or chimney
  26. Land improvements of any kind
  27. Landscaping
  28. Mercantile and market fixtures and equipment
  29. Mezzanines
  30. Movable partitions
  31. Outdoor lighting or signage
  32. Overhead cranes or craneways
  33. Parking lots
  34. Patios
  35. Paving
  36. Powerfeed wiring
  37. Process piping
  38. Railroad spurs
  39. Retaining walls
  40. Septic or wastewater treatment systems
  41. Sidewalks
  42. Swimming pools, unless otherwise noted
  43. Utility hook-ups beyond 10 feet of building perimeter
  44. Wells
  45. Window air conditioners
  46. Window treatments (draperies, shades, blinds, etc.)

Agricultural Occupancies

Construction Type

To distinguish different construction materials and assemblies, their corresponding cost differences, and their fire-related characteristics, CoreLogic uses the following construction types:

Frame - A building in which the exterior walls, bearing walls and partitions, and the structural floors and roof, and their supports, are wood or light-gauge metal. This includes buildings in which the wood or light-gauge metal has been combined with other materials to form composite components such as wood or metal studs with brick or stone veneer, stucco or metal siding.

Masonry - A building that has the exterior walls constructed of a material such as brick, hollow or solid concrete block, concrete, gypsum block, clay tile, stone, or similar materials. The structural floors and roof are of wood or light-gauge metal.

Pre-Engineered Metal - A building that employs a system of pre-engineered rigid steel framing members. The exterior walls are of metal siding, sandwich panels, or masonry, and the roof is clad with metal roofing or sandwich panels.

Pole Frame - A building in which the structural skeleton consists of timbers or poles. The poles or posts are set into the ground on top of concrete pads and then backfilled to anchor the post structure.

Structural Insulated Panel (SIP) - A load-bearing wall material, made up of rigid insulation sandwiched between two pieces of plywood or other material.

CoreLogic has also developed special occupancies to represent unique structures. These include Quonset buildings, silos, corn cribs, and sunshades. The construction classification system described above does not apply to these buildings. These are entered as additions.

What Is Included in an Agricultural Occupancy

The following items are included in the cost data:

  1. Appropriate type and adequate number of doors and windows
  2. Builders' risk insurance
  3. Building permits
  4. Building services in accordance with energy conservation guidelines
  5. Built "slab on grade"
  6. Emergency lighting
  7. Excavated soil removed from site
  8. Exterior cladding, interior finishes, and building services appropriate to specific occupancy and construction type
  9. Field supervision
  10. Foundation per climatic requirements
  11. Ideal building site (level, free of obstructions, accessible, adequate space to allow for the staging of materials and the movement of construction personnel and equipment)
  12. Public liability insurance
  13. Sales tax on materials and labor, where applicable
  14. Site surveys and building layout
  15. Social Security and Medicare
  16. Unemployment tax
  17. Utility laterals to 10 feet outside of building perimeter
  18. Workers' compensation and employers’ liability insurance

What Is Not Included in an Agricultural Occupancy

The following items are not included in the cost data:

  1. Any costs associated with the procurement and/or development of the land on which the structure is built, including but not limited to:
  • Acquisition loan costs
  • Hook-up, tap, or entitlement fees
  • Impact fees
  • Legal fees
  • Property taxes
  • Real estate commissions
  • Right-of-way costs
  • Site remediation
  1. Appliances
  2. Balconies
  3. Canopies
  4. Construction finance charges
  5. Construction management fees
  6. Conveyors
  7. Curbs and gutters
  8. Debris removal
  9. Decks
  10. Demolition
  11. Dock levelers
  12. Driveway
  13. Dumbwaiters
  14. Elevators
  15. Emergency electrical generators, unless otherwise noted
  16. Fences
  17. Fire protection/detection/suppression systems
  18. Fuel oil storage tanks
  19. Furniture
  20. Land improvements of any kind
  21. Landscaping
  22. Mezzanines
  23. Movable partitions
  24. Outdoor lighting or signage
  25. Parking lots
  26. Patios
  27. Paving
  28. Powerfeed wiring
  29. Process piping
  30. Railroad spurs
  31. Retaining walls
  32. Septic or wastewater treatment systems
  33. Sidewalks
  34. Utility hook-ups beyond 10 feet of building perimeter
  35. Wells
  36. Window air conditioners
  37. Window treatments (draperies, shades, blinds, etc.)