Estimate the value of the leased fee

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Reference no: EM13762765

First-year NOI for a long-term net lease is expected to be $50,000. Rent is escalating at a rate of 3 percent per year, but there is a two-year period between adjustments. Thus, the income for years 1 and 2 will be $50,000, increasing to $50,000 (1+.03) = $53,045 in years 3 and 4, and so on. The discount rate is 14 2 percent. Assuming beginning-of-year payments, estimate the value of the leased fee.

Reference no: EM13762765

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