Different types of commercial real estate

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1. List and describe in detail 5 different types of commercial real estate.

2. List and describe in detail the three ways that commercial real estate is valued.

3. Armor Investment Company is considering the acquisition of a heavily depreciated building on 10 acres of land. It expects to rent the building as a storage facility and expects to collect cash flows equal to $100,000 next year. However, because depreciation is expected to increase, Armor expects cash flows to decline at a rate of 4% per year indefinitely. Armor expects to earn an IRR on investment return (r) at 13%. What is the value of this property?

4. List and describe in detail 3 advantages and 3 disadvantages of owning vs. leasing commercial real estate. Advantages Disadvantages

5. List and describe in detail 5 of the 8 different types of risk of income producing properties.

6. What was one thing that you found most interesting in the study of commercial real estate? Describe in detail.

Reference no: EM132918495

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