Create an Excel Sheet Solution to Mini-Case 6-76 from text:

An office building should last 60 years, but this owner will sell it at 20 years for 40% of its construction cost. For the first 20 years it can be leased as Class A space, which is all this owner operates.

When the building is sold, the land's cost will be recovered in full.

$2.2M Land

$4.1M Building

$640,000 Annual operating and maintenance

4% Annual property taxes and insurance (% of initial investment)

a) if the owner wants a 12% rate of return, what is the required monthly leasing cost?

b) Assuming that the building is vacant 5% of the time, what is the required monthly lease?

c) What is an example of monthly cost per square foot for Class A space in your community?