A certain industrial building is offered for sale. The building is fully occupied with a credit tenant
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A certain industrial building is offered for sale. The building is fully occupied with a "credit" tenant whose original ten-year lease has five years remaining. The lease is triple net at $12.50 per net leasable square foot (per annum). At lease renewal, the market rent is expected to increase by 20% over the lease rate. For pricing purposes, you assume a (combined) 10% vacancy and collection allowance. Based on the credit worthiness of the tenant, you feel a discount rate of 12% appears reasonable?
Related Book For
Statistics for Business Decision Making and Analysis
ISBN: 978-0321890269
2nd edition
Authors: Robert Stine, Dean Foster
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