chapt14b - on capital. 7. Year Market Net Buildin g Expect...

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Garrett Barnes HW Chapt 14b 4,5,7 4. Management expense for the work of contracting for all necessary services, bookkeeping and financial reporting, leasing and marketing strategies, and tenant communications. On-site managers might also be required. Leasing commissions Property insurance Property taxes Cleaning Security Landscaping Utilities not paid by tenants Exterminators Advertising Repairs and maintenance Supplies 5. Property management is an “opportunity cost,” absorbing the time and energy of whoever is performing this job. The owner/manager puts in time and effort even if he or she manages the property. Not including these costs would favor the financial figures and make them look healthier than they are by including a return on labor in the return
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Unformatted text preview: on capital. 7. Year Market Net Buildin g Expect ed Rent Vacanc y Allowan Capital Expendit ures (TI Cost) Revers Cash Flow Per SF Building Cash Flow $(200.0 0) $(30,000,00 ) 1 $22.55 $20.00 $0.00 $0.00 $20.00 $3,000,000 2 $23.11 $20.00 $0.00 $0.00 $20.00 $3,000,000 3 $23.69 $20.00 $0.00 $0.00 $20.00 $3,000,000 4 $24.28 $20.00 $0.00 $0.00 $20.00 $3,000,000 5 $24.89 $20.00 $0.00 $0.00 $20.00 $3,000,000 6 $25.51 $25.51 $(12.76 ) $(10.00) $2.76 $413,494 7 $26.15 $25.51 $0.00 $0.00 $25.51 $3,826,988 8 $26.80 $25.51 $0.00 $0.00 $25.51 $3,826,988 9 $27.47 $25.51 $0.00 $0.00 $25.51 $3,826,988 10 $28.16 $25.51 $0.00 $0.00 $281.6 2 $307.1 3 $46,069,778 PV= $203.4 3 $30,513,895 NPV= $513,895 IRR= 12.27% Ask Cap= 10.00% Mkt Cap= 9.83%...
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This note was uploaded on 09/01/2011 for the course BUSINESS 101 taught by Professor Jones during the Spring '11 term at Southern Nazarene.

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chapt14b - on capital. 7. Year Market Net Buildin g Expect...

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