You are assessing the development of a new office building and your research indicates current market rates are as follows:

Gross rent: $520/sqm

Outgoings: $90/sqm

Car parking: $500/bay/month

The building will be completed in two years' time. Gross rent is forecasted to escalate at 8.5% pa, CPI is expected to remain steady at 6% and parking charges are expected to increase by a rate halfway between rent and inflation. What net market income (per square metre) and car parking rent (per bay per month) should you expect to receive upon completion of the building?

Answer rating: 100% (QA)

Calculating Net Market Income and Car Parking Rent Net Market Income NMI Gross Rent in Two Years ... View the full answer