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Given the following information on real estate development • Gross leasable space is 200,000 square feet • Market rent is $40 per leasable SF •The sum of hard and soft cost is $120 per GSF • Land acquisition cost is $30 per GSF .Loss factor is 10% • Stabilized vacancy rate is 5% • Operating cost is $15 per GSF What is the replacement rent per leasable SF to achieve a "Build to Return" equal to 20%? (keep 1 decimal in your answer) Hint: use the spreadsheet in the module to help answer the question.

Given the following information on real estate development • Gross leasable space is 200,000 square feet • Market rent is $40 per leasable SF •The sum of hard and soft cost is $120 per GSF • Land acquisition cost is $30 per GSF .Loss factor is 10% • Stabilized vacancy rate is 5% • Operating cost is $15 per GSF What is the replacement rent per leasable SF to achieve a "Build to Return" equal to 20%? (keep 1 decimal in your answer) Hint: use the spreadsheet in the module to help answer the question.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Given the following information on real estate development • Gross leasable space is 200,000 square feet • Market rent is $40 per leasable SF •The sum of hard and soft cost is $120 per GSF • Land acquisition cost is $30 per GSF .Loss factor is 10% • Stabilized vacancy rate is 5% • Operating cost is $15 per GSF What is the replacement rent per leasable SF to achieve a "Build to Return" equal to 20%? (keep 1 decimal in your answer) Hint: use the spreadsheet in the module to help answer the question.
Transcribed Image Text:Given the following information on real estate development • Gross leasable space is 200,000 square feet • Market rent is $40 per leasable SF •The sum of hard and soft cost is $120 per GSF • Land acquisition cost is $30 per GSF .Loss factor is 10% • Stabilized vacancy rate is 5% • Operating cost is $15 per GSF What is the replacement rent per leasable SF to achieve a "Build to Return" equal to 20%? (keep 1 decimal in your answer) Hint: use the spreadsheet in the module to help answer the question.
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