Question

Assume that cost new to build a Class A office space in Times Square currently costs approximately $1,000 per square foot. Following extensive renovation, the subject property has an effective age of 5 years and a total economic life of 60 years. Find the value of the building and improvements if the land value estimate is $100 million.

Answer 1

Let's say x square feet in the building now

$$100 million+1000\times x$$

is the value of the building