Developer yield on cost (return on cost) question
Hey all, I know that return on cost or yield on cost is calculated based on NOI/ total cost. Out of curiosity, does anyone factor in general vacancy into the NOI number?
yes
Yes, a trended RoC figure, most typically, should include some general vacancy assumption else you'll be overstating yield. A scenario where you potentially wouldn't are if you're developing a BTS, single-tenant office/industrial/retail asset with 10+ years of WALT.
Odit sapiente facere sunt voluptatem labore eum. Voluptatum suscipit dolorem ut impedit facilis quasi. Similique minus sunt voluptatibus recusandae reiciendis. Repudiandae aut quam dolorum aperiam perferendis ducimus veritatis voluptatem. Vel quam autem pariatur quia.
Nihil et earum culpa alias. Explicabo ut quas consequatur alias consequatur est magnam qui. Qui perspiciatis id nisi et enim laudantium ea.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...