alicep
Mar 19, 2007, 03:15 AM
I have been given a project to complete as part of a job interview process and I am new to the industry of commercial property leasing so am after a bit of help!!
The scenario is that i have been given the costs to build a warehouse to then lease out to a potential customer and i have been asked to come up with rental charges and payback period. The building size is approx 1000m2 at a cost of approx $500k and they want a rate of return of 12.5% before tax. They are assuming a lease period of 15 years.
The main questions i am stuggling with are
1. 'what is the payback period of the project?' and
2. 'how much should the customers rental be?'
Any help greatly appreciated, cheers.
The scenario is that i have been given the costs to build a warehouse to then lease out to a potential customer and i have been asked to come up with rental charges and payback period. The building size is approx 1000m2 at a cost of approx $500k and they want a rate of return of 12.5% before tax. They are assuming a lease period of 15 years.
The main questions i am stuggling with are
1. 'what is the payback period of the project?' and
2. 'how much should the customers rental be?'
Any help greatly appreciated, cheers.