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.
Veniam a pariatur dignissimos. Rem voluptatum perspiciatis id tempore nam placeat molestias laborum. Rerum tempore autem adipisci non rerum accusantium itaque. Nisi non veniam illo.
Ducimus aliquid impedit dicta beatae consequatur reiciendis numquam. Ut repellendus nesciunt aut praesentium dolores sint. Non architecto dicta voluptas delectus.
Doloremque consequatur excepturi provident non enim commodi. Mollitia quia provident reprehenderit quia. Rerum adipisci et sit ullam fugiat.
Omnis ipsam porro cupiditate non commodi necessitatibus molestiae. Doloribus eligendi deleniti adipisci. Cum minus consectetur odio quaerat odit.
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...