What is the market value of a commercial property subject to the lease where the tenant...
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What is the market value of a commercial property subject to the lease where the tenant has four years remaining under a lease of 200m2 and currently pays $20,000 per annum less than market gross rent? Gross market rental is $100,000p.a. Outgoings payable by the tenant are $50/m2. The Capitalisation rate is 8% p.a. Use either the term and reversion or Layer methodology to calculate your answer. Show all workings. What is the market value of a commercial property subject to the lease where the tenant has four years remaining under a lease of 200m2 and currently pays $20,000 per annum less than market gross rent? Gross market rental is $100,000p.a. Outgoings payable by the tenant are $50/m2. The Capitalisation rate is 8% p.a. Use either the term and reversion or Layer methodology to calculate your answer. Show all workings.
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Calculation of market value of the property Using the layer method First calculate ... View the full answer
Related Book For
Financial Markets And Institutions
ISBN: 978-0132136839
7th Edition
Authors: Frederic S. Mishkin, Stanley G. Eakins
Posted Date:
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