Final answer:
A building that is less desirable due to being outdated is experiencing a form of obsolescence. This involves desirability diminishing because of outdated design or external economic factors, leading to potential abandonment and lower property values.
Step-by-step explanation:
If a building is less desirable because it is outdated, this condition is often referred to as obsolescence. This can occur when the design, technology, or utilities of the building no longer meet current standards or expectations, making it less attractive to buyers or renters. In real estate, there are two main types of obsolescence: functional obsolescence and economic obsolescence. Functional obsolescence happens when a building's layout, design, or structure is less attractive due to changes in building standards or preferences. Economic obsolescence, on the other hand, occurs when external factors, such as neighborhood decline or changes in the economy, make the property less valuable. This can lead to a cycle of decay as described in America's older neighborhoods, where buildings become rentals, suffer from disinvestment, fall into poor maintenance, and may eventually be abandoned, contributing to a decrease in property values and further decline.