Assume you have a client with a requirement for a building with 114,000 SF located in the Lehigh Valley of PA. Total hard and soft costs are $69/SF. Assume a building to land coverage ratio of 50%. Land is being offered to you at $4.00/SF of Land Area. You are trying to achieve an unleveraged yield of 6.0%.

1. What is the unit rent in $/SF that you need to achieve your target yield?
   1. 4.5
   2. 4.62
   3. 3.09
   4. 2.90
2. You conduct market research and find the prevailing rent is $4.25/SF. Proceeding with the development by renting to a tenant that pays the prevailing rent allows you to achieve your target return
   1. true
   2. false