In estimating the remaining useful economic life of a building, what must you establish next?

When estimating the remaining useful economic life of a building, understanding depreciation is critical because it directly correlates to the wear and tear, physical deterioration, and functional obsolescence that the property has experienced over time. Depreciation helps assess how much value the building has lost since it was constructed, which in turn affects its overall economic viability and lifespan. Accurately estimating depreciation enables you to determine how much longer the building can be reasonably expected to contribute to income or utility before it needs substantial repairs or replacement.

The remaining useful economic life is essentially the period during which the property is expected to remain viable and generate income, influenced heavily by its current condition and depreciation status. Thus, knowing how much depreciation has occurred is a necessary foundation before you can accurately project the remaining useful life.

Considering the other options, while current property market trends and rental income potential can provide useful context and influences on a property's value and viability, they do not directly relate to the physical condition and age-based considerations needed for determining remaining useful life. Capitalization methods also play a role in valuing the property but do not specifically address the estimation of remaining useful life in the same way that an understanding of depreciation does.