Final answer:
Depreciation needs to be calculated when using the cost approach to value.
Step-by-step explanation:
When using the cost approach to value, it is necessary to calculate a dollar value for depreciation. This approach considers the cost of building or replacing a property, taking into account factors such as construction costs, land value, and depreciation.
In the cost approach, depreciation is the reduction in the value of a property over time due to factors such as wear and tear, functional obsolescence, and external obsolescence. To calculate the dollar value for depreciation, you would need to estimate the property's remaining economic life and determine the appropriate depreciation rate.
On the other hand, the sales comparison approach, income approach, and gross rent multipliers focus on different factors to determine property value, and they do not necessarily require calculating a dollar value for depreciation.