Expect triple-net market rents

Assignment Help Finance Basics
Reference no: EM131340905

Suppose the lease on a certain space will expire at the beginning of 2010. You believe that the probability of the existing tenant renewing is 75 percent. If they renew, you will need to spend only an estimated $5.00/SF to upgrade his space. If they do not renew, it will take $20.00/SF to modernize the space and there would be 4 months of expected vacancy in that case. What expected cash flow (NOI) forecast should you put in year 2010 of your pro-forma for this space, if you expect triple-net market rents on new leases in 2010 to be $21.67/SF?

Question options:

  • Zero.
  • $7.92/SF.
  • $9.58/SF.
  • $11.11/SF

Reference no: EM131340905

Questions Cloud

Determine the cost of this procedure : Search for pricing for an MRI for a 13-year-old female patient complaining of headaches. Determine the cost of this procedure to you and what the cost is to the insurance provider. Do a price comparison against three other facilities offering the ..
Distinguish between current and non current liabilities : Distinguish between current liabilities and non-current liabilities. Name and briefly describe three items belonging to each category.
What is the principal concern and methodology of theorist : SYA 4010: What is the principal concern and methodology of the theorist? Why is the selected topic relevant to the theorist?What research question (or hypothesis) would the theorist ask about the selected topic?What are the findings of your research?..
Write breadth first search to traverse a directed graph : Write a program that searches the directory C:\Windows\ and all its subdirectories recursively and prints all the files which have extension *.exe.
Expect triple-net market rents : What expected cash flow (NOI) forecast should you put in year 2010 of your pro-forma for this space, if you expect triple-net market rents on new leases in 2010 to be $21.67/SF?
Tenant owe the landlord in expense reimbursements : A tenant has a gross lease with an ‘‘expense stop''of $2.75/SF. If the building has 200,000 square feet of leasable space, reimbursable operating expenses of $700,000, and the tenant rents 25,000 SF, then how much does the tenant owe the landlord ..
Write a well-researched paper exploring green transportation : Select only "ONE" of these topics and write a well-researched paper exploring Green transportation. Papers should cover a brief history, the crux of the issue, the current state of affairs, and near-term future developments.
What should you account for at 31 december 2004 : Using the accounting equation, summarise the issuance of the first two semiannual interest payments.- What should you account for at 31 December 2004? Why?
How do you define the concept of attention : Respond to the following questions in 100 to 150 words each. How do you define the concept of attention? Can attention be consciously allocated to tasks?  Why or why not

Reviews

Write a Review

Finance Basics Questions & Answers

  Essay about medium sized companies-philanthropic activity

The above advertisement is designed to encourage companies to donate generously to worthy health-related causes.

  Comment on the given statement

Complete the given table:- Comment on the given statement: "Forward rates are good predictors of future interest rates.

  What are the reasons for the decline of traditional banking?

What are the reasons for the decline of traditional banking?

  Milwaukee surgical supplies inc sell on term of 310 net 30

milwaukee surgical supplies inc. sell on term of 310 net 30 gross sales for the year are 1200000and the collections

  How a firm can add value by combining traditional capital

Discuss how a firm can add value by combining traditional capital budgeting techniques with an alternative strategy and consider sustainable capital.

  Calculate the expected value of the high- and low-risk

The company currently has no debt, but is considering borrowing $870,000 on a short-term basis to help finance its purchase of the project. The company will owe $900,000, including principal and interest, in one year. There is 60% chance a boom wi..

  What would be the effective cost of the bank loan

what would be the nominal and effective cost of that credit? If the company could get the funds from a bank at a rate of 10%, interest paid monthly, based on a 365-day year, what would be the effective cost of the bank loan, and should Lamar use bank..

  Calculate the profit as a percent of the premium paid

The bid rate of an Australian dollar is $1.055 and the ask rate is $1.065 at Bank 1. The bid rate of the Australian dollar is $1.04 and the ask rate is $1.05 at Bank Y. Calculate your gain if you use $1,000,000 and execute locational arbitrage. Sh..

  Present value of 20 year annuity

Find out the present value of 20-year annuity with the semiannual payments of $500 evaluated at a 14 percent interest rate?

  Compute the yield to maturity on the old issue

a. Compute the yield to maturity on the old issue and use this as the yield for the new issue. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) b. Make the appropriate tax adjustment to determi..

  Write down the equation of security market line find

the following data have been developed for the donovan company the manufacturer of an advanced line of

  Discuss the validity of the following statements

Discuss the validity of the following statements in both the short run and long run.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd