have been asked to provide an anticipated cap rate and vacancy rate for a pro forma of a subject property with 49,000 square feet. A selection comparable Class-A properties, with an average area of 54,000 square feet, and in the same sub-market as the subject, provided the following information: Average net operating income of $420,000; average effective gross income of $752,000; average gross potential revenue of $800,000; and the average value of the properties of $7,600,0
have been asked to provide an anticipated cap rate and vacancy rate for a pro forma of a subject property with 49,000 square feet. A selection comparable Class-A properties, with an average area of 54,000 square feet, and in the same sub-market as the subject, provided the following information: Average net operating income of $420,000; average effective gross income of $752,000; average gross potential revenue of $800,000; and the average value of the properties of $7,600,0
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
Problem 1PS
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You have been asked to provide an anticipated cap rate and vacancy rate for a
pro forma of a subject property with 49,000 square feet. A selection comparable
Class-A properties, with an average area of 54,000 square feet, and in the same
sub-market as the subject, provided the following information:
Average net operating income of $420,000; average effective gross income of
$752,000; average gross potential revenue of $800,000; and the average value of
the properties of $7,600,000.
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