Question

A potential office building development costs $ 110 per square foot to construct , excluding land costs . The developer now holds an option to purchase the land for $ 20,000,000 ; The operating expense ratio is expected to be 40 percent, the stabilized occupancy level for the market is 90 percent, and the market capitalization rate is 8 percent. The building proposed by the developer contains 400,000 square feet of space and gross rents for the building are expected to be $26 per square foot. According to the front door approach to financial feasibility , should the developer move ahead with the project ? ​

Answer 1

A company purchases a 10,000 square foot commercial building for $400,000 and spends an additional $65,000 to divide the space into two separate rental units and prepare it for rent. Unit A, which has the desirable location on the corner and contains 2,500 square feet, will be rented for $2.00 per...

Answer 2

$\huge\mathcal\fcolorbox{red}{blue}{See In Attachment}$