Economic
Depreciation. The
loss of value of a property from all causes outside of the
property itself.
For
instance, John builds a $300,000 home in a largely barren
area. The following year, the bulk of the remaining land
is sold to an industrial plant and is quickly built
upon. The value of John's property has decreased due to
the proximity of the plant, which is considered the economic
depreciation of his property.
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