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I am bringing a parcels shapefile and buildings shapefile into ArcScene.

They come in okay and look fine as 2D features.

When I extrude the building outlines based on height they look as if they are 20+ miles tall and they do not seems to be proportional.

Is there a way to set units when I extrude?

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The heights may be measured using different units to the layer's coordinate system. You can apply a factor to the extrusion once you figure out the correct conversion. See extrusion value or expression on the Extrusion tab:

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