Complete a cost approach valuation using the following information: The subject is a 64,000 SF warehouse building
Question:
Complete a cost approach valuation using the following information:
The subject is a 64,000 SF warehouse building (3% of the total square footage has office build-out).
The property has a 160,000 SF parking lot on a 6.60-acre lot.
Land values in the area are $3.50/SF (remember, there are 43,560 SF in an acre).
Building hard costs = $43.00/SF for warehouse and $48.50/SF for interior office build-out (must be added to the base warehouse cost for the portion of the building that has office-build out)
Parking lot costs = $5.50/SF
Soft costs = 11%
Entrepreneurial incentive = 15%
Effective age: 5 years
Economic life: 45 years
Round your answer to the nearest $10,000. Present the final value in whole dollars and $/SF.
Basic Finance An Introduction to Financial Institutions Investments and Management
ISBN: 978-1111820633
10th edition
Authors: Herbert B. Mayo