Amazonia Co wants to buy a 505,000-square-foot distribution facility in the outskirts of the city of Cool, CA. The subject facility is presently renting for $5.50 per square foot per year. Based on recent market activity, two properties have sold within a several-mile distance from the subject facility. They are comparable in size, design, and age. One facility is 470,000 square feet and is presently being leased for $5.30 per square foot annually. The second facility contains 530,000 square feet and is being leased for $5.70 per square foot annually, it sold just a few days ago and is in very close proximity to the subject, which makes it three times as important in determining the subject's value as the first facility Market data indicate that current vacancies and operating expenses combined should run approximately 68 percent and 78 percent of gross income for the two respective facilities, and it is 75 percent for the subject. The first facility sold for $10.9 million, and the second sold for 5114 million If you can do the match in Excel with correct referencing to cels with intermediate results. This will allow you to avoid rounding errors. Otherwise, increase decimal places the more the better say, or even higher (a) First, fill out the table below. Round to whole dollars. Don't use any units (eg, "") core Facility Facility #2 Subject facility Potential gross income 5 5 Net operating income $ $ (b) Use the gross income mulipler approach to calculate the subject facility's estimated current value. Fil out the table below. Round 38 to whole dollar, and multipliers to 2 decimal places. Don't use any units (8.8% Facility Facility 2 Subject facity Gross income multiple Estimated current value to using the direct capitalization approach to calculate the subject facilis estimated current value. Fill out the table below. Round SSS to whole dollar, and the rates to 2 decimal places (es. put 1.23 for "1.23"), Don't use any wie. W or "S"). Facility Facility 2 Subject facility Capitalization rate Estimated current value $ (d) Between these two approaches, iput "b" for the gross income multiplier approach, or "e" for the direct capitalization approach is more accurate is estimating the value of the subject property Amazonia Co. wants to buy a 505,000 square foot distribution facility in the outskirts of the city of Cool, CA. The subject facility is presently renting for $5.50 per square foot per year. Based on recent market activity, two properties have sold within a several-mile distance from the subject facility. They are comparable in size, design, and age. One facility is 470,000 square feet and is presently being leased for $5.30 per square foot annually. The second facility contains 530,000 square feet and is being leased for $5.70 per square foot annually. It sold just a few days ago and is in very close proximity to the subject, which makes it three times as important in determining the subject's value as the first facility. Market data indicate that current vacancies and operating expenses combined should run approximately 68 percent and 78 percent of gross income for the two respective facilities, and it is 75 percent for the subject. The first facility sold for $10.9 million, and the second sold for $11.4 million if you can do the math in Excel with correct referencing to cells with intermediate results. This will allow you to avoid rounding errors. Otherwise, increase decimal places the more the better! Say, 6 or even higher (a) First, fill out the table below. Round 55S to whole dollars. Don't use any units (eg, "$"). Facility 1 Facility #2 Subject facility Potential gross income $ $ Net operating income $ $ (b) Use the gross income multiplier approach to calculate the subject facilitys estimated current value. Fill out the table below. Round SSS to whole dollar, and multipliers to 2 decimal plac Facility #1 Facility #2 Subject facility Gross income multiplier Estimated current value $ 1) Using the direct capitalization approach to calculate the subject facility's estimated current value. Fill out the table below. Round 555 to whole dollar, and the rates to 2 decimal places units e.." or "5"). Facility 1 Facility 2 Subject facility Capitalization rate Amazonia Co wants to buy a 505,000-square-foot distribution facility in the outskirts of the city of Cool, CA. The subject facility is presently renting for $5.50 per square foot per year. Based on recent market activity, two properties have sold within a several-mile distance from the subject facility. They are comparable in size, design, and age. One facility is 470,000 square feet and is presently being leased for $5.30 per square foot annually. The second facility contains 530,000 square feet and is being leased for $5.70 per square foot annually, it sold just a few days ago and is in very close proximity to the subject, which makes it three times as important in determining the subject's value as the first facility Market data indicate that current vacancies and operating expenses combined should run approximately 68 percent and 78 percent of gross income for the two respective facilities, and it is 75 percent for the subject. The first facility sold for $10.9 million, and the second sold for 5114 million If you can do the match in Excel with correct referencing to cels with intermediate results. This will allow you to avoid rounding errors. Otherwise, increase decimal places the more the better say, or even higher (a) First, fill out the table below. Round to whole dollars. Don't use any units (eg, "") core Facility Facility #2 Subject facility Potential gross income 5 5 Net operating income $ $ (b) Use the gross income mulipler approach to calculate the subject facility's estimated current value. Fil out the table below. Round 38 to whole dollar, and multipliers to 2 decimal places. Don't use any units (8.8% Facility Facility 2 Subject facity Gross income multiple Estimated current value to using the direct capitalization approach to calculate the subject facilis estimated current value. Fill out the table below. Round SSS to whole dollar, and the rates to 2 decimal places (es. put 1.23 for "1.23"), Don't use any wie. W or "S"). Facility Facility 2 Subject facility Capitalization rate Estimated current value $ (d) Between these two approaches, iput "b" for the gross income multiplier approach, or "e" for the direct capitalization approach is more accurate is estimating the value of the subject property Amazonia Co. wants to buy a 505,000 square foot distribution facility in the outskirts of the city of Cool, CA. The subject facility is presently renting for $5.50 per square foot per year. Based on recent market activity, two properties have sold within a several-mile distance from the subject facility. They are comparable in size, design, and age. One facility is 470,000 square feet and is presently being leased for $5.30 per square foot annually. The second facility contains 530,000 square feet and is being leased for $5.70 per square foot annually. It sold just a few days ago and is in very close proximity to the subject, which makes it three times as important in determining the subject's value as the first facility. Market data indicate that current vacancies and operating expenses combined should run approximately 68 percent and 78 percent of gross income for the two respective facilities, and it is 75 percent for the subject. The first facility sold for $10.9 million, and the second sold for $11.4 million if you can do the math in Excel with correct referencing to cells with intermediate results. This will allow you to avoid rounding errors. Otherwise, increase decimal places the more the better! Say, 6 or even higher (a) First, fill out the table below. Round 55S to whole dollars. Don't use any units (eg, "$"). Facility 1 Facility #2 Subject facility Potential gross income $ $ Net operating income $ $ (b) Use the gross income multiplier approach to calculate the subject facilitys estimated current value. Fill out the table below. Round SSS to whole dollar, and multipliers to 2 decimal plac Facility #1 Facility #2 Subject facility Gross income multiplier Estimated current value $ 1) Using the direct capitalization approach to calculate the subject facility's estimated current value. Fill out the table below. Round 555 to whole dollar, and the rates to 2 decimal places units e.." or "5"). Facility 1 Facility 2 Subject facility Capitalization rate