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ADDENDA <br /> Going-concern value. <br /> 1. The market value of all the tangible and intangible assets of an established and operating <br /> business with an indefinite life, as if sold in aggregate; also called value of the going <br /> concern. <br /> 2. Tangible and intangible elements of value in a business enterprise resulting from factors <br /> such as having a trained work force, an operational plant, and the necessary licenses, <br /> systems, and procedures in place. <br /> 3. The value of an operating business enterprise. Goodwill may be separately measured <br /> but is an integral component of going-concern value. <br /> Gross lease. A lease in which the landlord is responsible for payment of all expenses pertaining to real <br /> estate taxes, insurance, and maintenance, but not tenant utilities and janitorial. <br /> Highest and best use. The reasonably probable and legal use of vacant land or an improved property, <br /> which is physically possible, appropriately supported, financially feasible, and that results in the highest <br /> value. The four criteria the highest and best use must meet are legal permissibility, physical possibility, <br /> financial feasibility, and maximum profitability. <br /> Hypothetical condition. That which is contrary to what exists but is supposed for the purpose of <br /> analysis. Hypothetical conditions assume conditions contrary to known facts about physical, legal, or <br /> economic characteristics of the subject property; or about conditions external to the property, such as <br /> market conditions or trends; or about the integrity of data used in an analysis. A hypothetical condition <br /> may be used in an assignment only if: <br /> • Use of the hypothetical condition is clearly required for legal purposes, for purposes of <br /> reasonable analysis, or for purposes of comparison; <br /> • Use of the hypothetical condition results in a credible analysis; and <br /> • The appraiser complies with the disclosure requirements set forth in USPAP for <br /> hypothetical conditions. <br /> Industrial gross lease. A lease in which the landlord is responsible for all payment of all expenses <br /> pertaining to base year real estate taxes, base year insurance, and maintenance, but not tenant utilities <br /> and janitorial. Tenant is responsible for any increases over base year (first lease year) real estate taxes <br /> and insurance. <br /> Inspection, property inspection. In accordance with generally accepted appraisal standards an <br /> inspection is the act of touring or viewing a property. It is a cursory or superficial visual observation of the <br /> property which is not intended to be confused with an assessment of a building, structure or mechanical <br /> systems performed by a professional engineer or general contractor. <br /> Intended use. The use or uses of an appraiser's reported appraisal, consulting, or review assignment <br /> opinions and conclusions, as identified by the appraiser based on communication with the client at the <br /> time of the assignment. <br /> Intended user. The client and any other party as identified, by name or type, as users of the appraisal, <br /> consulting, or review report, by the appraiser based on communication with the client at the time of the <br /> assignment. <br /> Investment value. The value of a property interest to a particular investor or class of investors based on <br /> the investor's specific requirements. Investment value may be different from market value because it <br /> depends on a set of investment criteria that are not necessarily typical of the market. <br /> Clobus, McLemore & Duke, Inc. <br />