Question
3. An office building leases for $18 per square foot, has a 7% vacancy rate, and all operating expenses including reserve for replacement and property
3. An office building leases for $18 per square foot, has a 7% vacancy rate, and all operating expenses including reserve for replacement and property taxes are $5 per foot.The overall capitalization rate for office buildings in this market is estimated at 10.5%.What is the estimated value of this property via the direct capitalization approach?
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Foundations Of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
11th Canadian Edition
1259024970, 978-1259265921
