Question
Using the perpetuity formula to value long-lived income producing assets. Assume a property has 100,000 SF. The existing Rent is $80/sf/yr. Operating expenses are $36/sf/yr.
Using the perpetuity formula to value long-lived income producing assets. Assume a property has 100,000 SF. The existing Rent is $80/sf/yr. Operating expenses are $36/sf/yr. If a comparable property traded at a cap rate of 5%, what is a reasonable estimate of the implied value?
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Entrepreneurial Finance Finance For Small Business
Authors: Philip J. Adelman
1st Edition
0138129835, 9780138129835
