Question
Appraisal of the fee simple interest in land improved with an office building: A comparable property was fully leased at the time of sale, the
Appraisal of the fee simple interest in land improved with an office building: A comparable property was fully leased at the time of sale, the leases were long-term (9 years remaining) net leases, and the credit ratings of the tenants were good. Market rent for office space is $22/sf. Contract rent for the comparable property was $20/sf. The Comparable property has 28,214 square feet The market vacancy rate is 6% A reasonable management expense is 6% of effective gross income Market Evidence supports a discount rate of 14% What adjustment for property rights conveyed would be shown in the sales comparison grid to this comparable?
Note: Enter your answer as a negative if it is a downward adjustment, and as positive if it is an upward adjustment.
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