You have the following data for recent commercial property sales in your area. Property Sale Price...
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You have the following data for recent commercial property sales in your area. Property Sale Price ($) A B U D E F 20,000,000 18,000,000 Size (Sq. Ft.) Gross Rent ($) 15,000,000 400,000 12,000,000 22,000,000 450,000 5,100,000 5,000,000 425,000 4,750,000 25,000,000 400,000 5,500,000 350,000 4,000,000 300,000 3,000,000 You wish to use this data to price a 375,000 square foot commercial property that you are interested in purchasing. You believe the gross rents on this property will be approximately $4.25m per year. What is a reasonable value of this property based on price/gross rent? You have the following data for recent commercial property sales in your area. Property Sale Price ($) A B U D E F 20,000,000 18,000,000 Size (Sq. Ft.) Gross Rent ($) 15,000,000 400,000 12,000,000 22,000,000 450,000 5,100,000 5,000,000 425,000 4,750,000 25,000,000 400,000 5,500,000 350,000 4,000,000 300,000 3,000,000 You wish to use this data to price a 375,000 square foot commercial property that you are interested in purchasing. You believe the gross rents on this property will be approximately $4.25m per year. What is a reasonable value of this property based on price/gross rent?
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Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
Posted Date:
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