Question: You are trying to value the same building based on comparable properties sold in recent years. There have been six property sales of buildings of

You are trying to value the same building based on comparable properties sold in recent years. There have been six property sales of buildings of comparable size in the surrounding area.

Property Sale Price Size (Sq. Ft.) Gross Rent A $20,000,000 400,000 $5,000,000 B $18,000,000 425,000 $4,750,000 C $22,000,000 450,000 $5,100,000 D $25,000,000 400,000 $5,500,000 E $15,000,000 350,000 $4,000,000 F $12,000,000 300,000 $3,000,000

a. Estimate the value of the building based on price per square foot.

b. Estimate the value of the building based on price/gross rent.

c. What are some of the assumptions you make when you value a building based on comparable buildings?

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