Commercial Rental Market in Midwestern City Research Paper

Commercial Rental Market in Midwestern City - Research Paper Example Per square foot annual rental cost = 43.12 + 7.47 * Occupancy - 3.9 * Wiring1 - 0.9 * Distance to City Center - 0.76 * Distance to Airport + 0.53 * Number of Elevator - 0.35 * Length of Lease - 0.11 * Years to last Renovations + 0.09 * Building Age. For a 3 year lease of 50,000 sqft of newly renovated and wired space that is one mile away from city center and fifteen miles away from the nearest airport, with 75% occupancy, three elevators, four years since last renovations in a ten year old building, the predicted per square foot annual cost of rent is $34, and predicted total annual cost of rent is $1,701,712. An office that is ten miles away from the airport its per square foot rent is valued on the real estate market at $33, while an office that is twenty miles away from the airport is valued at $26, with a discount value of 70% per mile. Similarly, the presence of office wiring is valued at $34.5, while no office wiring at $30.6, with a discount value of 10%. An office with 0.75 occupancy is valued at $29.8 per square foot, while an office with 0.97 occupancy is valued at $31.5. Potential savings are best made by increasing the distan