An office building leases for 18 per square foot has a 7


An office building leases for $18 per square foot, has a 7% vacancy rate, and all operating expenses including reserve for replacement and property taxes are $5 per foot. The overall capitalization rate for office buildings in this market is estimated at 10.5%. What is the estimated value of this property per square foot via the direct capitalization approach?

 

 

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Finance Basics: An office building leases for 18 per square foot has a 7
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