Cap Rate Valuation Your firm is considering purchasing an industrial property. Use the provided financial...

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Cap Rate Valuation Your firm is considering purchasing an industrial property. Use the provided financial estimates to estimate the net operating income for the property and use the appropriate cap rate to estimate the value of this subject property. Gross Revenue $2,500,000 Industry Cap Rate Retail 7.50% Vacancy Rate Bad Debt Rate 10% 5% 10% Property Management 12% Multi- family Office Space Industrial 12% Utilities/Insurance/Replac ement $1,000,000 8%

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