What method is used to estimate the cost of reproducing a building in the Cost Depreciation Approach?

The correct answer is the Cost per Square Foot Method because it provides a straightforward way to estimate the cost of reproducing a building by calculating the cost based on the overall square footage of the property. This method involves determining the current cost of materials and labor needed to construct a building similar to the subject property, then multiplying that cost by the total square footage. This approach is efficient and can easily accommodate variations in construction costs, making it a practical choice for appraisals.

In contrast, other methods offered in the question do not primarily focus on the reproduction cost of a building. The Market Analysis Method typically assesses property value based on comparable sales in the vicinity, which is not directly applicable to estimating reproduction costs. The Volume Measurement Method might calculate space in cubic feet but is less commonly used for establishing costs in real estate valuations. Lastly, the Sales Comparison Method evaluates value based on similar properties’ sale prices, which again does not provide a direct estimate for reproduction costs in the context of the Cost Depreciation Approach.