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Question Two A company wants to buy a 320,000-square-foot property. The property i presently renting for Sh. 4 per square foot. Based on recent market
Question Two A company wants to buy a 320,000-square-foot property. The property i presently renting for Sh. 4 per square foot. Based on recent market activity, two properties have soid within a two-kilometre distancc from ie subject propety and are very comparable in size, design, and age. One property is 350,000 square feet and is presently being leased for Sh. 3.90 per square foot annually. The second one contains 300,000 square feet and is being leased for Sh. 4.10 per square foot. Market data indicate that current vacancies and operating expenses should run appro:imately 50 percent of gross income for these properties. The first property sold for Sh. 9.4 million, and the second sold for Sh.7.9 million. Required Hew-mueh-should the-eempany pay for the property2 (10
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