logo Use SA10RAM to get 10%* Discount.
Order Now logo

Ask This Question To Be Solved By Our ExpertsGet A+ Grade Solution Guaranteed

expert
Ruth FrameLaw
(5/5)

627 Answers

Hire Me
expert
Anuja SharmaPsychology
(5/5)

698 Answers

Hire Me
expert
Joel HawkinsResume writing
(5/5)

563 Answers

Hire Me
expert
Nagendra Singh ChauhanMathematics
(/5)

966 Answers

Hire Me
JMP
(5/5)

The vice president of a rapidly growing information systems company has given you the task to analyze the commercial rental market

INSTRUCTIONS TO CANDIDATES
ANSWER ALL QUESTIONS

The Problem Statement

The vice president of a rapidly growing information systems company has given you the task to analyze the commercial rental market for relocation to a Midwestern city in the US. At your first meeting, the problem is described as follows:

“We’re planning to relocate to the Midwest, and we’re committed to one particular city. We’ve gotten

information on office rental costs for 225 new rentals in that city during the last two years. The market there is pretty flat, so the numbers should reflect the present situation. We’re at the wish list stage right now, and we are not yet in a hurry. We can wait for a bargain, but how do we know what is a bargain in that market? We know lots about computer networks, but almost nothing about commercial real estate. Obviously, square footage is going to be the primary driver of rental cost, but we don’t know how to price other things. For example, how much can we save by going to a longer lease? How does location and age of the building factor into the cost? Clearly we cannot pinpoint costs down to the last dollar, but there is information in the data. Your task is to provide some cost ranges on the various features of the space that we may want to lease. Our rental needs are 50,000 square feet of office space in good repair and with modern wiring. We tend towards a short term lease as a precaution because we may not want to lock ourselves into an unknown facility and area from the start. Of course we would prefer a desirable location, but we don’t know what the financial trade-offs are. We hope your analysis will provide us with a model that allows us to play scenarios and to judge the asking rent of new properties that come on the market. We would like to know a bargain when we see one.”

II. The Data

 

Some background on commercial real estate: Figuring actual cost of rental is not entirely straight forward. When asked, a property owner or realtor may quote what is called “usable square feet”, an annual rental price per square foot, and a “common area factor”.

“Usable square feet” is the amount of space the lease holder actually gets to use. A “common area factor” such as 15% indicates by how much the “usable square feet” have to be increased to obtain the “rentable square feet” on which the lease holder actually pays rent. The initial quote of rent per square foot will only refer to the first year of the lease, and scheduled yearly increases will be part of the

 

contract. Also, the initial quote will not include operating costs, for example, $7.50 per square foot per year, plus yearly increases thereof, to be specified in the contract. Finally, parking may cost, for example, $1300 per space and month in the city, but be free in the suburb.

To cut through this complexity, we report SqftLease as “usable square feet”, which is what the firm is interested in. The variable RentTotal has been compiled as total annual cost of rentable square feet, including operating expenses as far as they can be projected. That is, we added up all annual costs

connected with rental, which is again what the firm is interested in (we glossed over the problem of rent increases, though). We assumed that employees will have either free parking in the suburb or use public transportation to commute to the city center. However, the rent may include a small number of executive parking spaces in the lease; their contribution to rental cost is not clear a priori and has to be estimated from the data.

 

(5/5)
Attachments:

Related Questions

. The fundamental operations of create, read, update, and delete (CRUD) in either Python or Java

CS 340 Milestone One Guidelines and Rubric  Overview: For this assignment, you will implement the fundamental operations of create, read, update,

. Develop a program to emulate a purchase transaction at a retail store. This  program will have two classes, a LineItem class and a Transaction class

Retail Transaction Programming Project  Project Requirements:  Develop a program to emulate a purchase transaction at a retail store. This

. The following program contains five errors. Identify the errors and fix them

7COM1028   Secure Systems Programming   Referral Coursework: Secure

. Accepts the following from a user: Item Name Item Quantity Item Price Allows the user to create a file to store the sales receipt contents

Create a GUI program that:Accepts the following from a user:Item NameItem QuantityItem PriceAllows the user to create a file to store the sales receip

. The final project will encompass developing a web service using a software stack and implementing an industry-standard interface. Regardless of whether you choose to pursue application development goals as a pure developer or as a software engineer

CS 340 Final Project Guidelines and Rubric  Overview The final project will encompass developing a web service using a software stack and impleme

Get Free Quote!

408 Experts Online