Value Estimate

The estimate of value is calculated by multiplying each factor's numerical value (20 years, 25 foot ceiling height, etc.) times their respective regression coefficient (in this case the price per square foot). To this is added the constant ($10.40/SF) which is also known as the "intercept" since it is the point where the regression line crosses the "Y" axis. The totals of each separate calculation results in the estimated value of $15/SF times 200,000 square feet equals $3,000,000. This is detailed as follows:

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