Which scenario is an example of economic obsolescence?

Economic obsolescence refers to a loss in value or desirability of a property due to external factors that are beyond the control of the property owner. In this case, the scenario where a major employer closes in a small town exemplifies economic obsolescence because it illustrates a shift in the economic landscape of the area, leading to reduced demand for properties due to job loss. This external factor negatively affects property values as the community faces economic decline, which can result in a decrease in rental income, occupancy rates, and overall market appeal.

The other scenarios presented involve issues that are typically classified as physical obsolescence or functional obsolescence. For instance, damage from a fire is related to the physical state of the property itself, while significant maintenance issues pertain to the upkeep and functionality of a building. The introduction of a new building code usually impacts the potential use or renovations of a property but does not inherently relate to external economic conditions affecting the broader area.