What form of depreciation is characterized by physical wear and tear on a property?

Physical deterioration refers to the loss in property value due to physical wear and tear that occurs from normal usage over time. This can include issues like peeling paint, worn-out flooring, roof leaks, and other forms of deterioration that are a result of the property being exposed to the elements, aging, or lack of maintenance.

Understanding physical deterioration is important for appraisers and evaluators as it impacts the overall value of the property. This type of depreciation is typically measurable and quantifiable, making it a critical factor in property evaluations. It is a natural part of a building's lifecycle and must be accounted for in assessments to give an accurate picture of the property’s current condition.

The other types of depreciation mentioned, such as functional obsolescence and economic obsolescence, relate to factors affecting utility and desirability rather than physical condition. Super-adequacy, on the other hand, signifies an excess in property features compared to market demand, which is not related to physical deterioration.