Question
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
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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Introduction to Finance Markets, Investments and Financial Management
Authors: Ronald W. Melicher, Edgar A. Norton
16th edition
1119398282, 978-1-119-3211, 1119321115, 978-1119398288
