QUESTION 3

1. Assume you are an investor and you have a retail and logistics 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 $8.00/SF of Land Area. You are trying to achieve an unleveraged yield of 6.0%. What is the min. rent in $/SF/Yr that you need to achieve your target yield?

   		$4.55
   		$5.1
   		$5.5
   		$6.0