Which of the following is typically assessed as part of physical depreciation?

The correct response is based on the idea that physical depreciation relates to the observable deterioration of a property's physical components over time. Exterior paint condition is a clear indicator of a property's upkeep. When paint deteriorates, it signals potential neglect or exposure to the elements, directly impacting the property's value. This type of deterioration is a crucial consideration when assessing physical depreciation because it directly reflects the state of maintenance of the building's exterior.

In contrast, while the condition of landscaping can influence overall curb appeal, it may not be seen as solely indicative of the building's physical condition. Similarly, the presence of nearby hazards might affect property value but does not pertain directly to the physical state of the property itself. The number of stories in a building is more about the design and structure rather than a factor that contributes to physical depreciation, as it does not indicate wear and tear or current condition. Thus, focusing on exterior paint condition aligns it with measurable physical depreciation that affects the value of the property.