Quote:
Originally Posted by Blarg
Wait, why $30 mil+ a year? Let's say the building costs $600 mil to build, that would be a 20% cap rate. That's a little insane for a commercial building.To put into perspective, the Bow cost $1.2 bil to build. 20% for the lease amount would be $240 mil a year. Are Cenovus and Encana really paying that much for office space?
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A developer is going to run an NPV on their investment, use the figures the flames want to pay in "rent", laugh and walk away.