In city A central district office bldgs were selling at %10 CAP rate. If this office bldgs expected to generate $20/SF: 1. Find develpt cost. 2. Determine the minimum rent rate and the maximum cap rate to trigger new developments. 3. Do you expect that long-run rent level will increase? Discuss. In city A central district office bldgs were selling at %10 CAP rate. If this office bldgs expected to generate $20/SF: 1. Find develpt cost. 2. Determine the minimum rent rate and the maximum cap rate to trigger new developments. 3. Do you expect that long-run rent level will increase? Discuss