What term refers to the loss in value due to impairments arising from economic forces outside the property?

The correct term for the loss in value that arises from economic forces external to the property is economic obsolescence. This concept reflects a decrease in a property's value due to factors such as changes in the local economy, trends in the market that affect demand, or broader economic conditions that negatively impact the desirability of a location. For example, if a factory closes down nearby, leading to job losses in the community, this would decrease the demand for residential properties in that area, ultimately lowering property values.

Depreciation is a broader term that encompasses the reduction in value over time, but it typically addresses wear and tear or physical deterioration. Market value refers to the price at which a property would sell in a competitive market, while value-in-use pertains to the specific value of a property based on its current use to the owner rather than its eventual sale value. Thus, while these terms are related to property valuation, they do not specifically capture the idea of value loss due to external economic factors as economic obsolescence does.