Consider an 18,000 SF shopping center where all tenants pay…

Consider an 18,000 SF shopping center where all tenants pay $21 per square foot, triple-net. Assume that operating expenses include real estate taxes of $56,000, insurance of $20,000, and CAM of $32,000. If a tenant requested full service gross (FSG) lease rather than a triple-net (NNN) lease, at what lease rate would the owner be indifferent between the two?

Consider an 18,000 SF shopping center where all tenants pay…

Consider an 18,000 SF shopping center where all tenants pay $20 per square foot, triple-net. Ignore the general vacancy allowance, and assume that reimbursable operating expenses are $90,000 and non-reimbursable operating expenses are only a management fee that is 3.5% of PGI. What is the approximate value of this property at an 8% cap rate?

Last year, Atlantic Richfield had sales of $325,000 and a ne…

Last year, Atlantic Richfield had sales of $325,000 and a net income of $28,200.  The firm finances using only debt and common equity, and total assets equal total invested capital.  Year-end assets were $250,000, and the firm’s debt ratio (total-debt-to-total-capital ratio) was 15%.  What was their ROE?    Your answer should be between 7.12 and 15.40, rounded to 2 decimal places, with no special characters.