In city A central district office bldgs were selling at %10 CAP rate. If this office bldgs expected to generate $20/SF: 1. Find develpt cost. 2. Determine the minimum rent rate and the maximum cap rate to trigger new developments. 3. Do you expect that long-run rent level will increase? Discuss.

Computer Networking: A Top-Down Approach (7th Edition)
7th Edition
ISBN:9780133594140
Author:James Kurose, Keith Ross
Publisher:James Kurose, Keith Ross
Chapter1: Computer Networks And The Internet
Section: Chapter Questions
Problem R1RQ: What is the difference between a host and an end system? List several different types of end...
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In city A central district office bldgs were selling at %10 CAP rate. If
this office bldgs expected to generate $20/SF:
1. Find develpt cost.
2. Determine the minimum rent rate and the maximum cap rate
to trigger new developments.
3. Do you expect that long-run rent level will increase? Discuss.
Transcribed Image Text:In city A central district office bldgs were selling at %10 CAP rate. If this office bldgs expected to generate $20/SF: 1. Find develpt cost. 2. Determine the minimum rent rate and the maximum cap rate to trigger new developments. 3. Do you expect that long-run rent level will increase? Discuss.
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