Which of the following can be a consequence of functional obsolescence in industrial properties?

Functional obsolescence refers to a decrease in a property's desirability due to factors that impact its utility or functionality, often due to outdated designs, building features, or construction practices that no longer meet current market demands. In industrial properties, this might include inadequate loading facilities, poor layout for modern manufacturing processes, or lack of access to essential infrastructure.

When a property suffers from functional obsolescence, it typically leads to reduced demand for that space. Potential tenants may seek more modern facilities that better suit their operational needs, thus leaving the obsolete property less attractive. As a result, landlords may find it more challenging to lease the space, leading to longer vacancies and potentially lowered rental rates to attract tenants.

The other options, such as increased property taxes and stronger lease agreements, do not directly stem from functional obsolescence. Increased property taxes often relate more to property value assessments and market trends rather than the functional aspect of the property. Higher tenant turnover is generally a result of tenant satisfaction, relocation needs, or market conditions, rather than the functionality of the property itself. Lastly, stronger lease agreements typically arise from high demand, which is particularly influenced by desirable property features rather than functional obsolescence. Thus, the correct answer reflects a direct consequence of how functional