Question: Need help on this please. 1.0 Let's practice creating the multi-period proforma Let's consider a 10-year analysis period on a perfectly average 200,000 sf single-tenant
Need help on this please.


1.0 Let's practice creating the multi-period proforma Let's consider a 10-year analysis period on a perfectly average 200,000 sf single-tenant industrial property in Kent, WA. There is currently no tenant, but we can sign one at "market rate" next year (starting in year 2) No other income produced by the property. Operating expenses are $2.75 psf and it doesn't matter if the space is vacant or not. CapEx Reserves are 2% of NOI (if there is any) Use the Cushman Wakefield Market Report or other sources to come up with your assumptions for rent, rent growth, opex growth, vacancy "NOTE: Cushman Wakefield Report uses monthly "Net rent", so you must convert to annual rent. Assume Gross Rent = Net Rent + Operating Expenses. Cap Rate for the property are assumed to hold steady who a while at 4.5% The current owner says he's offering you a "great deal" for the property. You can purchase it for $30 million. You can sell the property with 2% selling fees on sale price Build your proforma below: Year PGI Vacancy Other Income EGI Operating Expenses NOI Cap Ex Purchase Price Exit Value NCF (PBTCF) MARKET STATISTICS 1.0 Let's practice creating the multi-period proforma Let's consider a 10-year analysis period on a perfectly average 200,000 sf single-tenant industrial property in Kent, WA. There is currently no tenant, but we can sign one at "market rate" next year (starting in year 2) No other income produced by the property. Operating expenses are $2.75 psf and it doesn't matter if the space is vacant or not. CapEx Reserves are 2% of NOI (if there is any) Use the Cushman Wakefield Market Report or other sources to come up with your assumptions for rent, rent growth, opex growth, vacancy "NOTE: Cushman Wakefield Report uses monthly "Net rent", so you must convert to annual rent. Assume Gross Rent = Net Rent + Operating Expenses. Cap Rate for the property are assumed to hold steady who a while at 4.5% The current owner says he's offering you a "great deal" for the property. You can purchase it for $30 million. You can sell the property with 2% selling fees on sale price Build your proforma below: Year PGI Vacancy Other Income EGI Operating Expenses NOI Cap Ex Purchase Price Exit Value NCF (PBTCF) MARKET STATISTICS
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