Question
You are appraising a small retail office building using the income approach. Use the data in the tables below to estimate the market value of
You are appraising a small retail office building using the income approach. Use the data in the tables below to estimate the market value of the property today using discounted cash flow analysis. You may assume there are no sale expenses.
| Year | Projected NOI from Rental Operations |
| Typical Investors Assumptions in this Market | |
| 1 | $100,000 |
| Overall cap rate | 7.0% |
| 2 | $103,000 |
| Discount rate | 9.0% |
| 3 | $106,090 |
| Holding period | 3 years |
|
|
|
| Terminal value | $1,500,000 |
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
7th Edition
1259919714, 978-1259919718
