Given the spreadsheet below and the following information, determine the propertys sNOI. CAM Reimbursements: $450,000, Vacancy/Collection Loss: 5%, Property Expenses: $913,551

Investors have determined that a 5.5% capitalization rate is appropriate for this property. What is the propertys value?

What is the difference between the direct capitalization method and the discounted cash flow method? Which method is superior and why?

Income Suite Tenant 100 Costco 110 Starbucks 200 Vandday Industries 210 Apple Store Total SF 85.000 7.500 3.500 10,000 % of RSF 80.19% 7.1% 3.30% Leased Space 85,000 7,500 3,500 10,000 Vacant Space 0 0 0 Expire Date 2030 2006 2005 2,040,000 315,000 157.500 420,000 0 2000 Net Rentable Sq Ft Building Gross Sq 106,000 100.00% 10,000 0.00% 106,000 $0.00 50.00 Total Gross Rental Income Annualized = GRI Total Potential Gross Inconne Annualized PGI Effective Gross Revenue EGR Annual Expenses Property Taxes Insurance Management Repair and Maintenance Total Expenses Total Espen Net Operating Income (NOI) Value capitalization Rate Value Based on Capitalization Method Atis Valen Income Suite Tenant 100 Costco 110 Starbucks 200 Vandday Industries 210 Apple Store Total SF 85.000 7.500 3.500 10,000 % of RSF 80.19% 7.1% 3.30% Leased Space 85,000 7,500 3,500 10,000 Vacant Space 0 0 0 Expire Date 2030 2006 2005 2,040,000 315,000 157.500 420,000 0 2000 Net Rentable Sq Ft Building Gross Sq 106,000 100.00% 10,000 0.00% 106,000 $0.00 50.00 Total Gross Rental Income Annualized = GRI Total Potential Gross Inconne Annualized PGI Effective Gross Revenue EGR Annual Expenses Property Taxes Insurance Management Repair and Maintenance Total Expenses Total Espen Net Operating Income (NOI) Value capitalization Rate Value Based on Capitalization Method Atis Valen