Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume a single tenant property has 90,000 SF of rentable area. The existing revenues are $82 SF/Yr. The market level revenue is $88 SF/Yr. Operating

Assume a single tenant property has 90,000 SF of rentable area. The existing revenues are $82 SF/Yr. The market level revenue is $88 SF/Yr. Operating expenses are $40 SF/Yr. Assume the existing lease has a month to month term, and a 4.0% cap rate for this property. What is the delta between the value based on the existing revenue versus the value based on the market level?

  1. $10.3 million
  2. $13.5 million
  3. $30.3 million
  4. $13.0 million

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Entrepreneurial Finance

Authors: Philip J. Adelman, Alan M. Marks

4th Edition

0132434792, 9780132434799

More Books

Students also viewed these Finance questions