Functional depreciation (or technical obsolescence) is the loss in value due to lack of utility or desirability of part or all of the property, inherent to the improvement or equipment. Thus, a new structure may suffer obsolescence when built.
Enter the percentage for additional functional depreciation. Use this field if you set a combined Physical and Functional Depreciation Percentage (by entering a percentage directly, or using the Marshall & Swift or Age/Life methods) and need to add some additional functional depreciation).