What characteristic is integral to the concept of 'economic life' of a property?

The concept of 'economic life' pertains to the duration over which a property is expected to generate income that meets or exceeds the costs associated with it. This characteristic emphasizes the potential for the property to produce a return on investment, taking into account factors like rental income, operational costs, and market demand.

Projected income is a critical factor because it directly impacts the property's profitability and, therefore, its economic viability. For example, if a property is situated in a desirable location and is expected to generate substantial rental income, its economic life could be considered long and valuable. Conversely, a property that is unlikely to generate adequate income could be assessed as having a shorter economic life.

While the age of the building structure, ongoing maintenance, and overall neighborhood conditions are certainly relevant to a property's overall value, they do not specifically define its economic life. The economic life is ultimately rooted in the income-generating potential of the property, making projected income the central characteristic of focus in this context.