What type of depreciation is considered most difficult to remedy?

Economic depreciation is generally regarded as the most challenging to remedy because it refers to the decline in an asset's value due to factors external to the property itself, rather than its physical condition or functionality. This type of depreciation is influenced by market conditions, shifts in demand, changes in the local economy, and other external forces that can severely affect the desirability of a property.

For example, if a new development in the area causes a rise in property taxes or increased traffic leading to congestion, even well-maintained properties may suffer from economic depreciation. Unlike physical or functional depreciation, which can often be addressed through repairs, renovations, or upgrades, economic depreciation can be more complex and sometimes requires broader economic recovery or changes in market perception, making it difficult to remediate in a practical sense.

Physical depreciation refers to wear and tear due to use or environmental factors, while functional depreciation deals with obsolescence related to a property's design or utility. Both can often be addressed through physical improvements or modifications. Premise is not typically considered a standard depreciation type in valuation contexts. Thus, economic depreciation stands out as the most challenging form to rectify.