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INCOME APPROACH SUMMARY <br /> Gross Income: <br /> Buildings 147239 SF x $3.00 PSF = $ 42,717 <br /> Fenced Storage 2341179 SF x $.30 PSF = 70,253 <br /> Gross Income Estimate $112,970 <br /> Less Vacancy and Collection Loss (5.0%) - 5,648 <br /> Effective Gross Income (100%) $107,322 <br /> Operating Expenses: <br /> Taxes $ 4,747 <br /> Insurance 1,500 <br /> Maintenance (.25 PSF) 3,560 <br /> Management (5%) 5,366 <br /> Total Expenses $ 15,173 (14%) $ 15,173 <br /> Net Income to Real Estate $ 921149 <br /> Capitalization: <br /> Capitalization Rate <br /> Mortgage .667 x .1523 = .10158 <br /> Equity .333 x .055 = .01831 <br /> Overall Capitalization Rate .11989 <br /> Say 12% <br /> Valuation: <br /> $929149 = 12% _ $767,908 - <br /> INCOME APPROACH INDICATION $767,908 <br /> RECONCILIATION <br /> Three separate value indications have been developed. These are as <br /> follows: <br /> Cost Approach $823,648 <br /> Market Approach $795 ,600 <br /> Income Approach $767 ,908 <br /> The cost analysis is reasonably strong. It is also typical that in <br /> properties with a special purpose nature , like subject, that the <br /> cost approach usually develops the strongest indication . This is <br /> because the comparable data available to the other approaches <br /> usually does not have a high degree applicability and accuracy. <br /> The land value estimate in this appraisal , due to the nature of the <br /> -15- <br />