Definition
A loss in value from outdated design, layout, or specifications relative to current market demand.
Example
Twenty-two foot clear height rendered the warehouse functionally obsolete for modern distribution.
Related terms
Frequently asked questions
What does Functional Obsolescence mean in real estate?
A loss in value from outdated design, layout, or specifications relative to current market demand.
How is Functional Obsolescence used in practice?
Twenty-two foot clear height rendered the warehouse functionally obsolete for modern distribution.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.