Question: Discuss the differences between using (1) a terminal cap rate and (2) an appreciation rate in property value when estimating revision values.

Discuss the differences between using

(1) a terminal cap rate and

(2) an appreciation rate in property value when estimating revision values.

Step by Step Solution

★★★★★

3.53 Rating (167 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The terminal cap rate approach to estimating a reversion value is based on the as... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Real Estate Principles Questions!

Q:

Discuss the differences between using DFDs to design an accounting system and using DFDs to document other systems.

Q:

Discuss the differences between traditional ERP and extended enterprise systems.

Q:

Discuss the differences between market segmentation, targeting, differentiation, and positioning. What two simple questions do they address?

Q:

You are appraising a small retail office building using the income approach. Use the data in the tables below to estimate the market value of the property today using discounted cash flow analysis....

Q:

Please explain in excel as it will easy for me to understand Thank you. Part 1 We are considering an acquisition of an existing medical office building (MOB) to our portfolio. There are 4 tenants....

Q:

RE 530 Real Estate Investment and Finance Problem Set 3: Monte Carlo Analysis This exercise is an important part of the learning process. The exercise has three objectives: . to ensure that you...

Q:

Caden is considering investing in an office property with 35,000 rentable square feet. After researching comparable properties in the area and examining the current leases in the building, Caden...

Q:

RE 530 Real Estate Investment and Finance Problem Set 3: Monte Carlo Analysis This exercise is an important part of the learning process. The exercise has three objectives: . to ensure that you...

Q:

RE 530 Real Estate Investment and Finance Problem Set 3: Monte Carlo Analysis This exercise is an important part of the learning process. The exercise has three objectives: . to ensure that you...

Q:

We are considering an acquisition of an existing medical office building (MOB) to our portfolio. There are 4 tenants. Tenants 1 and 2 occupy 15,000 and 8,000 square feet respective, at $19.00 per...

Q:

Identify the variable as a discrete or a continuous random variable in parts (a)-(e). (a) The loss of weight following a diet program. (b) The magnitude of an earthquake as measured on the open-ended...

Q:

For which set of crystallographic planes will a first-order diffraction peak occur at a diffraction angle of 46.21 for BCC iron when monochromatic radiation having a wavelength of 0.0711 nm is used?

Q:

39. The Democrat and Chronicle reported that 25% of the flights arriving at the San Diego airport during the first five months of 2001 were late (Democrat and Chronicle, July 23, 2001). Assume the...

Q:

=+z explain what is meant by free resources in THE contexts.

Q:

A presale agreement is said to be equivalent to take-out funding that may be used to repay the construction loan. What will the construction lender be concerned about if the developer plans to use...

Q:

What are some of the types of risk that should be considered when analyzing real estate?

Q:

How may the use of leases shift the risk of rising operating expenses from the lessor to the lessee?

Q:

When do contributions made by the employee to a defined contribution plan become vested? At retirement At the age of 62. After a minimum number of years with the company, usually 5. Immediately

Q:

Compute the financial ratios for Dell Computer Corporation and IBM. Examine these ratios along with those in Exhibit 10. What do they tell you about Dell and its competitors? Think about liquidity...

Q:

Leo Consulting writes a contract with Highgate University to restructure Highgate