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.

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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Chapter11: Capital Budgeting Decisions
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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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