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ABC real estate company wants to know the market value for their one of their building. A comparable valuation must be done to know the
ABC real estate company wants to know the market value for their one of their building. A comparable valuation must be done to know the market value.
ABC building fact
ABC Building Valuation
Valuation Sensitivity
Comparable Offices
Historical Quarterly Returns for ABC Properties
Facts Building rentable square feet Current rent per square foot Years remaining on lease Unreimbursed expenses as % of effective gross income (management fee) Number of underground parking spaces Current parking revenue per space per month $105.72 Annual rent increases 165,000 $11.89 16 1.80% 114 1.30% Assumptions Inflation rate Capital expenditures per square foot Exit cap rate Sales commission 2% $1.36 8.75% 5%Step by Step Solution
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