What would you expect to pay for a 5486 sqm prime industrial property, fully leased at $175/sqm gross?   The outgoings = $62/sqm.   Capitalisation rate is 8%.   • Building area = 5,486 sqm   • Net income = gross income – outgoings   • Gross income =   • Outgoings =   • Net income =   • Present value = Net income divided by capitalization rate

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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What would you expect to pay for a 5486 sqm prime industrial property, fully leased at $175/sqm gross?

 

The outgoings = $62/sqm.

 

Capitalisation rate is 8%.

 

• Building area = 5,486 sqm

 

• Net income = gross income – outgoings

 

• Gross income =

 

• Outgoings =

 

Net income =

 

• Present value = Net income divided by capitalization rate

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