Real Estate Valuation (LO4, CFA2) Sky High Partners is evaluating a high-rise office building to add to its investment portfolio. To calculate a value, Sky High plans to use the income approach, based on the following estimates: Gross potential yearly rental income $894,000 Estimated vacancy rate 3.5% Yearly operating costs $426,000 Market capitalization rate 16% Compute the net operating income (NOI) for the building. Using the income approach, calculate the value for the office building.