Economic Life

The Economic Life of a property is, simply, the period of time it is expected to be worth anything. At the end of its Economic Life, a building is no longer valuable as an asset, although the land that it sits on should still be.

The physical life of a property is a longer affair. Think about it: a building may still be standing (physical life) but be worthless (Economic Life) because of defects so severe that pulling it down and starting again represents the best cost/benefit option.