What is the required monthly leasing cost-monthly lease

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Reference no: EM13818255

An office building should last 60 years, but this owner will sell it at 20 years for 40% of its construction cost. For the first 20 years it can be leased as Class A space, which is all this owner operates. When the building is sold, the land’s cost will be recovered in full.

$2.2 Million Land

$4.1 Million Building

$640,000 Annual operating and maintenance

4% Annual property taxes and insurance (% of initial investment)

If the owner wants a 12% rate of return, what is the required monthly leasing cost?

Assuming that the building is vacant 5% of the time, what is the required monthly lease?

What is an example monthly cost per square foot for Class A space in your community?

Reference no: EM13818255

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