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Question 8 10 pts Suppose that your 12,000 SF building was leased for $10 per square...
Suppose that your 12,000 SF building was leased for $10 per square foot two years ago...
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 10%? $57,644 $59,684 $61,850 $64,152 $66,602
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%...
Question 3 10 pts H&R Block rents 3,000 square feet of an office building. Their lease...
Question 3 10 pts H&R Block rents 3,000 square feet of an office building. Their lease started in 2014 at $16.00 per foot, with a $2/SF rent step in 2017. They have a full service gross lease with a $5.20 expense stop. If operating expenses are $6.60 in 2018, what is their effective rent in 2018? O 18.80 19.40 19.80 20.30 20.80 10 p Question 4
Question 3 10 pts H&R Block rents 3,000 square feet of an office building....
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...
Question 6 10 pts A major retail company plans to build 30,000 square building that would...
Question 6 10 pts A major retail company plans to build 30,000 square building that would cost $8 million to develop. It is expected to lease for $22 per foot (absolute net) with $5 per foot in operating expenses. If the company develops the property and does a sale-leaseback, what price will they get if the property is sold at a 6% cap rate? O $9,777,778 o$ 10,153,846 $ 10,560,000 $ 11,000,000 $ 11,478,261 10 pts
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...
Will rate fast Question 8 10 pts Assume that you are appraising the value of a...
Will rate fast
Question 8 10 pts Assume that you are appraising the value of a 135,000 SF industrial property using the sales comparison approach. Checking with the County Property Appraiser's Office, you have found recent sales for three very similar properties. The first is an 80,000 SF property that sold for $7,200,000; the second is a 100,000 SF property that sold for $8,000,000; and the third is a 140,000 SF property that sold for $9,800,000. Assume that land size...
#1 MULTIPLE CHOICE (no need to show work but please get right) 1. A property has a net operating income of $25,000 and the capitalization rate used in the market is 10%. What is the indicated value? a...
#1 MULTIPLE CHOICE (no need to show work but please get right) 1. A property has a net operating income of $25,000 and the capitalization rate used in the market is 10%. What is the indicated value? a) $250,000 b) $300,000 c) $325,000 d) $2,500,000 2. A property sold for $555,000. The buyer anticipated that the potential gross income (PGI) would be $93,000, the vacancy would be 5%, and expenses would be 35% of the effective gross income (EGI) in...
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 10%? $57,644 $59,684 $61,850 $64,152 $66,602
Question 3 10 pts H&R Block rents 3,000 square feet of an office building. Their lease started in 2014 at $16.00 per foot, with a $2/SF rent step in 2017. They have a full service gross lease with a $5.20 expense stop. If operating expenses are $6.60 in 2018, what is their effective rent in 2018? O 18.80 19.40 19.80 20.30 20.80 10 p Question 4
Question 3 10 pts H&R Block rents 3,000 square feet of an 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...
Question 6 10 pts A major retail company plans to build 30,000 square building that would cost $8 million to develop. It is expected to lease for $22 per foot (absolute net) with $5 per foot in operating expenses. If the company develops the property and does a sale-leaseback, what price will they get if the property is sold at a 6% cap rate? O $9,777,778 o$ 10,153,846 $ 10,560,000 $ 11,000,000 $ 11,478,261 10 pts
Will rate fast
Question 8 10 pts Assume that you are appraising the value of a 135,000 SF industrial property using the sales comparison approach. Checking with the County Property Appraiser's Office, you have found recent sales for three very similar properties. The first is an 80,000 SF property that sold for $7,200,000; the second is a 100,000 SF property that sold for $8,000,000; and the third is a 140,000 SF property that sold for $9,800,000. Assume that land size...
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