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You are consider investing in an industrial building. The NOI is projected to be $100,000 in the first year. You think the NOI will grow
You are consider investing in an industrial building. The NOI is projected to be $100,000 in the first year. You think the NOI will grow at the rate of 4% per year until the end of year 7, and 2% after that (indefinitely). All payments are in arrears. The discount rate is 6% per year. What is the current cap rate?
5.44% | ||
6.38% | ||
2.85% | ||
3.61% | ||
4.53% |
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