Describe "functional utility" in the context of property value.

Functional utility refers to the effectiveness and efficiency of a property in serving its intended purpose. It reflects how well a property meets the needs of its users or occupants. A property with high functional utility optimally supports its designated use, whether that’s residential, commercial, or industrial.

For example, a well-designed office space that promotes productivity through adequate lighting, layout, and amenities would be considered to have high functional utility. In contrast, if the layout of the office is awkward or does not provide sufficient space for required activities, its functional utility would be lower, potentially affecting its overall value.

In property valuation, functional utility is a crucial factor as it directly influences buyer demand and the price that prospective buyers are willing to pay. A property that efficiently serves its intended function is typically more valuable than one that does not.