What is the importance of replacement costs when valuing commercial real estate?

A listener asks: What is the importance of replacement costs when valuing commercial real estate? "Ask Michael Bull" is a commercial real estate FAQ video series featuring a new video posted each business day. Michael Bull, CCIM is a thirty year experienced commercial real estate advisor. He is CEO of Bull Realty, a U.S. commercial real estate sales, leasing and advisory firm headquartered in Atlanta, and host of the nationally syndicated Commercial Real Estate Show. 800-408-2855 x 101 Michael Bull's company website: http://www.bullrealty.com/