Use the direct capitalization approach to income valuation to calculate the market value of the warehouse that has been described below: Leasable space: Average rent: Expected annual rent growth: Other income: Expected annual growth in other income: Vacancy and collection losses: Operating expenses: Capital expenditures: Selling expenses: Discount rate: I Going-in cap rate: Going-out cap rate: 50,000 square feet $5 per square foot per year 5% $2 per square foot per year 10% 5% of potential gross income 30% of effective gross income 5% of effective gross income 5% of future selling price 10% 7% 7.5% $3.13 million $2.93 million $2.19 million $219,378