Please provide specific calculations or examples of when it can and cant be used

Typically, real estate (buildings plus land) has relatively long expected life spans and generally

good estimates of NOI and CAP can be obtained. This allows for the use of:

=

Which is simply a rewrite of the present value of a no-growth perpetuity. Provide examples to

ITech Geek Investors why this works for both real estate that has a no-growth rent profile and

real estate that has a constant growth rent profile.

HINT:

When and why does:

=

= () (1 + )

And when does it not?