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You are currently analyzing the cash flows generated by an office in Hoboken. The lease for the tenant currently occupying 12,000 square feet of space
You are currently analyzing the cash flows generated by an office in Hoboken. The lease for the tenant currently occupying 12,000 square feet of space is set to expire at the end of the year. You believe that there is a 75% chance the tenant will renew their lease. If they don't renew, you believe it will take about 9 months to find a new tenant. Whether the existing tenant renews or not, you expect to receive $30/sf in rent for this particular space. What is the vacancy adjustment corresponding to this tenant's space?
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