Build to x% Return (Yield on Cost, Return on Cost, or the Going in Cap Rate): Assume that you anticipate total development costs will be about $175 per building gross square foot (GSF). Assume that you want to generate at least a 10.5% return on total development costs (i.e., "build to a 10.5 cap"), what must the property generate in projected stabilized annual NOI per gross square foot?

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Calculating Required Stabilized Annual NOI per GSF Following the build to a 105 cap approa... View the full answer