Please submit your write-up and excel workbook with your discounted cash flow (DCF) analysis

Office tenants in Basel sign 10-year NNN leases, with a 5% step-up in rent in Year 5. A single-tenant A-quality office building with a long lease typically incurs capital expenditures equal to roughly 16% of NOI. The new building under construction will be of much greater quality than neighboring buildings, and will therefore likely attract tenants with rents roughly 20% above the current "prime'' level for the neighborhood. Total expenses (operating + vacancy/credit) of a new Swiss office building are 34% of gross rent if the building is professionally managed. Expenses incurred by corporate owners are typically 10% higher. This can be calculated not as 44% of the rent, but rather (1 + 10%)*(34%*gross rent). Property sales brokers charge a 3% commission upon sale. Swiss commercial property valuation in Basel is approximately 80% structure and 20% land. The depreciable life of Swiss property is 20 years. You may not depreciate land in Switzerland.