3 You are considering purchase of a commercial property which you will hold for a minimum period of 10 years. The property is a 9 storey, 2,700m2 office building in Auckland CBD built in 1980. Three of the office floors are currently vacant. Tenants on another two floors have two years remaining on their lease and they indicated that they would be vacating the premises. Leases in the rest of the building are for another five-year term. You are deriving an appropriate discount rate for determining investment value. Provide your explanation and evaluation of the risks affecting the level of the discount rate.