QUESTION 16 Staying with Question 15, by how much would a buyer overpay if the buyer submitted a price based on the in-place rent? 1. Industrial 2.512.5M 3.511.5M 4.$10.5M QUESTION 15 A single tenant property has an in-place rent of $6M/Yr and operating expenses of $2.5M/Yr. Based on market levels, the rent should be $5.5M. The existing tenant has a month to month lease (meaning the landlord would have to release the space at the market rent if the tenant opts not to renew). Assuming a cap rate of 495, what is a fair price for the asset? 1.$87.5M 2.585M 3.$75M 4.572M