Use the information provided below to estimate the market value of the office building that has been described.

Type of Property	Office Building
Leasable Space	100,000 square feet
Average Rent	$20.00 per square foot per year
Expected Rent Growth	4.50% per year
Vacancy and Collection Losses	15.00% of potential gross income
Other Income	$1.50 per square foot per year
Expected Growth in Other Income	3.00% per year
Operating Expenses	27.50% of effective gross income
Capital Expenditures	2.50% of effective gross income
Going-In Cap Rate	5.50%
Going-Out Cap Rate	6.25%
Selling Expenses	4.00% of future selling price
Discount Rate	6.75%

What is the market value of this property according to the direct capitalization approach?

1. 1. Estimate the NOI for year 1.
   2. Use the appropriate cap rate.

Use the information provided below to estimate the market value of the office building that has been described. Type of Property Office Building Leasable Space 100,000 square feet Average Rent $20.00 per square foot per year Expected Rent Growth 4.50% per year Vacancy and Collection Losses 15.00% of potential gross income Other Income $1.50 per square foot per year ces Expected Growth in Other Income 3.00% per year Operating Expenses 27,50% of effective gross income Capital Expenditures 2.50% of effective gross income Going-In Cap Rate 5.50% Going Out Cap Rate 6.25% Selling Expenses 4.00% of future selling price Discount Rate 6.75% What is the market value of this property according to the direct capitalization approach? 1. Estimate the NOI for year 1. 2. Use the appropriate cap rate. BI VA HTML Editora A - IE 3 1 1 XX, EE V GODT 12pt Para Record/Upload Media e ty te 0 words Use the information provided below to estimate the market value of the office building that has been described. Type of Property Office Building Leasable Space 100,000 square feet Average Rent $20.00 per square foot per year Expected Rent Growth 4.50% per year Vacancy and Collection Losses 15.00% of potential gross income Other Income $1.50 per square foot per year ces Expected Growth in Other Income 3.00% per year Operating Expenses 27,50% of effective gross income Capital Expenditures 2.50% of effective gross income Going-In Cap Rate 5.50% Going Out Cap Rate 6.25% Selling Expenses 4.00% of future selling price Discount Rate 6.75% What is the market value of this property according to the direct capitalization approach? 1. Estimate the NOI for year 1. 2. Use the appropriate cap rate. BI VA HTML Editora A - IE 3 1 1 XX, EE V GODT 12pt Para Record/Upload Media e ty te 0 words