Question: Part 5: Valuation using the cost approach Assume that cost new to build a Class A office space in Times Square currently costs approximately $1,000

Part 5: Valuation using the cost approach

Assume that cost new to build a Class A office space in Times Square currently costs approximately $1,000 per square foot.Following extensive renovation, the subject property has an effective age of 5 years and a total economic life of 60 years.Find the value of the building and improvements if the land value estimate is $100 million.

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