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Suppose that your 12,000 SF building was leased for $10 per square foot two years ago...
Question 8 10 pts Suppose that your 12,000 SF building was leased for $10 per square...
Question 8 10 pts Suppose that your 12,000 SF building was leased for $10 per square foot two years ago on a five-year lease (i.e. three years remaining). Your tenant wants to negotiate a buyout (.e., get out of the lease) but comparable space is now renting for only $8 per square foot. At what price should you allow the existing tenant to buyout the lease if your discount rate is 12%? e $57.644 $59,684 $61,850 $64,152 $66,602 10 pts
Office building, 3 stories, 3000 square feet (sf) gross interior floor space each, 2 tenants per...
Office building, 3 stories, 3000 square feet (sf) gross interior floor space each, 2 tenants per floor, 1350 sf of the building is used for hallways, common bathrooms, stairs, elevator, and lobby. Owner wants a gross rent of $135,000 per year. A. What is the rent that the Owner should charge per square foot? If Tenant Z rents 1200 sf of usable area, what will be his monthly rent? B. If the building has an operating expense ratio of 28%...
Show excel work, please. I rate An owner of the Atrium Tower Office Building is currently...
Show excel work, please. I rate An owner of the Atrium Tower Office Building is currently negotiating a five-year lease with ACME Consolidated Corp. for 20,000 rentable square feet of office space. ACME would like a base rent of $20 per square foot with step-ups of $1 per year beginning one year from now. a. What is the present value of cash flows to ATRIUM under the above lease terms? (Assume a 10% discount rate.) b. The owner of ATRIUM...
3. (30 points) property owner is considering 2 alternatives for leasing space in his office building...
3. (30 points) property owner is considering 2 alternatives for leasing space in his office building for the next three years The first alternative is a not lease agreement of S14 per square foot during the first year with $2.00 step provisions each of the following year. The lense is net and yearly expenses per square foot are as follows: $6.00, 56,65, and $7.05. As this is a netlease, the tenant will pay all expenses. If the lease term is...
1. Suppose you are assigned to assess a 50,000-square-foot office building that currently is full...
1. Suppose you are assigned to assess a 50,000-square-foot office building that currently is fully leased at $10 per square foot. The owner's annual costs of operation for the building (interest, maintenance, insurance) are $400,000. The building is 10 years old and is expected to have an additional 20 years of useful life. Assuming these market conditions will continue, estimate the current market value of the building under the income approach if the discount rate is 10 percent. How does...
It is late November and you are undertaking an investment analysis of an office property that...
It is late November and you are undertaking an investment analysis of an office property that your firm is considering purchasing at the end of this year. The property has 80,000 square feet of leasable space currently occupied by two tenants each leasing 40,000 square feet. Both tenants have triple-net leases; all operating expenses are passed through to tenants. The owner pays operating expenses associated with vacant space. Current ‘‘market’’ rent is $20 per square foot on a triple net...
Use the following to answer questions 1-5: A local 20,000 square foot retail building is 100%...
Use the following to answer questions 1-5: A local 20,000 square foot retail building is 100% occupied by a single tenant. The lease started last week and continues for 10 years. The rent is $7.00 per square foot per year. The landlord pays all the expenses associated with the building. The expenses total $2.00 per square foot per year, and we have determined that they are market-oriented. From a market survey, it is our opinion that 5% is a reasonable...
Using the info below, calculate the rent for the next 11 years for TomFoolery and Blue...
Using the info below, calculate the rent for the next 11 years
for TomFoolery and Blue Mold Grocer and please show all work!
Thanks.
REAL ESTATE FINANCE As a loan officer at Last National Bank, you have been asked to make a recommendation as to the maximum loan that your bank should extend to the potential buyer of the Norad Shopping Center. The rent roll is given below. Market research indicates that the current market rental for leasing a comparable...
Wollogong Group Ltd. of New South Wales, Australia, acquired its factory building 10 years ago. For...
Wollogong Group Ltd. of New South Wales, Australia, acquired its factory building 10 years ago. For several years, the company has rented out a small annex attached to the rear of the building for $30,000 per year. The renter's lease will expire soon, and rather than renewing the lease, the company has decided to use the annex to manufacture a new product Direct materials cost for the new product will total $80 per unit. To have a place to store...
Wollogong Group Ltd. of New South Wales, Australia, acquired its factory building 10 years ago. For...
Wollogong Group Ltd. of New South Wales, Australia, acquired its factory building 10 years ago. For several years, the company has ented out a small annex attached to the rear of the building for $30,000 per year. The renter's lease will expire soon, and rather than renewing the lease, the company has decided to use the annex to manufacture a new product. Direct materials cost for the new product will total $80 per unit. To have a place to store...
Question 8 10 pts Suppose that your 12,000 SF building was leased for $10 per square foot two years ago on a five-year lease (i.e. three years remaining). Your tenant wants to negotiate a buyout (.e., get out of the lease) but comparable space is now renting for only $8 per square foot. At what price should you allow the existing tenant to buyout the lease if your discount rate is 12%? e $57.644 $59,684 $61,850 $64,152 $66,602 10 pts
3. (30 points) property owner is considering 2 alternatives for leasing space in his office building for the next three years The first alternative is a not lease agreement of S14 per square foot during the first year with $2.00 step provisions each of the following year. The lense is net and yearly expenses per square foot are as follows: $6.00, 56,65, and $7.05. As this is a netlease, the tenant will pay all expenses. If the lease term is...
Using the info below, calculate the rent for the next 11 years
for TomFoolery and Blue Mold Grocer and please show all work!
Thanks.
REAL ESTATE FINANCE As a loan officer at Last National Bank, you have been asked to make a recommendation as to the maximum loan that your bank should extend to the potential buyer of the Norad Shopping Center. The rent roll is given below. Market research indicates that the current market rental for leasing a comparable...
Wollogong Group Ltd. of New South Wales, Australia, acquired its factory building 10 years ago. For several years, the company has rented out a small annex attached to the rear of the building for $30,000 per year. The renter's lease will expire soon, and rather than renewing the lease, the company has decided to use the annex to manufacture a new product Direct materials cost for the new product will total $80 per unit. To have a place to store...
Wollogong Group Ltd. of New South Wales, Australia, acquired its factory building 10 years ago. For several years, the company has ented out a small annex attached to the rear of the building for $30,000 per year. The renter's lease will expire soon, and rather than renewing the lease, the company has decided to use the annex to manufacture a new product. Direct materials cost for the new product will total $80 per unit. To have a place to store...
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