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submarket rental rate on a typical owner building

Discussion in 'Illinois' started by Y-TOWN, Apr 9, 2011.

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  1. Y-TOWN

    Y-TOWN Junior Member

    0
    Mar 10, 2007
    Professional Status:
    Certified General Appraiser
    State:
    Ohio
    I have a appraisal due in about two weeks. The building is a professional building less than 10 years old @6,000 S/F. As a user building this property is worth $100 per S/F.

    The owner leased it for $4 net for five years for no good reason (not a brother in law or anything like that). By the income approach the building is worth 1/2 of the fee simple interest. The subject is a typical user building that the developer built for the Red Cross and charged approximately 1/2 of the structures potential rent on a per S/F basis for what reason I don't know.

    As a user building in the fee simple interest the structure is worth 2 times the leased fee value.

    How do I handle this?

    Thanks in advance for any good answers

    y-town
     
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