7989 / What is a structural component? When will a structural component qualify as a real estate asset for purposes of the REIT asset tests?

(1)  wiring,

(2)  plumbing systems,

(3)  central heating and air conditioning systems,

(4)  elevators or escalators,

(5)  walls, floors and ceilings,

(6)  permanent coverings of walls, floors and ceilings,

(7)  windows and doors,

(8)  insulation,

(9)  chimneys,

(10)  fire suppression systems (such as sprinkler systems and fire alarms),

(11)  fire escapes,

(12)  central refrigeration systems,

(13)  integrated security systems, and

(14)  humidity control systems.²

(1)  The manner, time, and expense of installing and removing the asset;

(2)  Whether the asset is designed to be moved;

(3)  The damage that removal of the asset would cause to the item itself or to the inherently permanent structure of which it is a part;

(4)  Whether the asset serves a utility-like function with respect to the inherently permanent structure;

(5)  Whether the asset serves the inherently permanent structure in its passive function;

(6)  Whether the asset produces income from consideration for the use or occupancy of space in or upon the inherently permanent structure;

(7)  Whether the asset is installed during construction of the inherently permanent structure; and

(8) Whether the asset will remain if the tenant vacates the premises.³