In city A central district office bldgs were selling at %10 CAP rate. If this office bldgs expected to generate $20/SF: Find develpt cost. Determine the minimum rent rate and the maximum cap rate to...

In city A central district office bldgs were selling at %10 CAP rate. If this office bldgs expected to generate $20/SF:

1. Find develpt cost.


2. Determine the minimum rent rate and the maximum cap rate to trigger new developments.


3. Do you expect that long-run rent level will increase? Discuss.