Properties Market "Below Replacement Cost"

[Jason Mak]

Hello BP

I always see commercials properties "priced replacement cost", even in the current "hot market" of California.  I wanted to see what type of factors can attribute to a properties marketed like this:

1. Listing brokers not knowing what the true replacement costs are today (hard, soft, land costs) and purely using this term for marketing purposes
2. The property being built many years ago when construction costs and land value were considerably lower than they are today

I'm wondering if the original owners depreciation is also being considered?