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You are looking to acquire a 49,800 rentable square foot industrial building that leases for $0.35 per square foot per month. The market vacancy rate
You are looking to acquire a 49,800 rentable square foot industrial building that leases for $0.35 per square foot per month. The market vacancy rate is 5%, and the operating expense ratio is 15%. There is no other income and none of the operating expenses are reimbursable. You are considering making an offer to purchase the property for $2,000,000. What is the indicated capitalization rate at acquisition?
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