You are being paid a fee to estimate the market value of an…
You are being paid a fee to estimate the market value of an office building with eight tenants. All of the eight existing leases on the subject property have remaining terms of three years or less. A comparable office property, also with eight tenants, just sold at a 5% cap rate. Current market rental rates for other similar properties are $40 per square foot. Most of the eight leases on the subject property have contract rental rates that are at, or near, the $40 per square foot market rate. But the comparable property has five fixed payment leases with $45 contract rental rates. Each of these five leases have remaining terms of six years or more.
Read Details