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Assume the following on a $/SF basis: on the revenue side, rent 100. On the expense side, property taxes 12, insurance 8...

Assume the following on a $/SF basis: on the revenue side, rent 100. On the expense side, property taxes 12, insurance 8, utilities 4, maintenance 8, security 6, and management 5. Assume a prevailing cap rate of 5% and that the cash flows are in perpetuity. What is the value of the income stream to an owner in a gross lease scenario?

A. 1140

B. 1200

C. 1400

D. 2000

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Answer #1

lease scenario, He value of aross Revenue-Expenses on proper income Cap rafe 100 Rent (R) Expeases a+8+ +8t6t5 43 Cap Yate va

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