AG Site & Cost: Formulas Flashcards
Building Income
Current Building Cost x Building Cap Rate
Solutions p 18
What is the formula for land value?
Given info:
NOI
Building cap rate
Building cost
Building income
Land cap rate
NOI
Minus building income
= Income to land
/ land cap rate
= land value
Solutions p 18
3 Formulas I, R, V
Income = V x R
Rate = I / V
Value = I / R
Solutions p 18
Land-to-building ratio
Total land area / GBA
page 20 solutions
Efficiency Ratio
Gross Floor Area = 100%
Rentable Area = x
Rentable Area / Gross Floor Area
page 202
Rentable/Usable Ratio
Rentable Area = 100%
Usable Area = x
Usable Area / Rentable Area
page 202
Office Space Ratio
GBA = 100%
Office = x
Office / GBA
solutions page 60
Entrepreneurial profit
Market value
– Total cost of development
page 224
Entrepreneurial incentive
A percentage of direct costs,
or direct and indirect costs,
or direct and indirect costs plus site value
(the value of the completed project).
Page 224
