A developer is building a 60-unit apartment building. Construction will take 15 months covering all of Year 0 and the first 3 months of Year 1. Tenants will begin moving in the first day of Month 4. Lease up is expected to occur at a rate of 10 units per month until reaching full (100%) occupancy (e.g., 10 units occupied in Month 4, 20 units occupied in Month 5, etc.) What forecasted vacancy rate (average vacancy for the year) should be used for Year 1 in the pro forma? Assume 100% occupancy once fully leased up. (CAUTION: The question asks for the VACANCY percent, NOT occupancy percent.) (
A developer is building a 60-unit apartment building. Construction will take 15 months covering all of Year 0 and the first 3 months of Year 1. Tenants will begin moving in the first day of Month 4. Lease up is expected to occur at a rate of 10 units per month until reaching full (100%) occupancy (e.g., 10 units occupied in Month 4, 20 units occupied in Month 5, etc.) What forecasted vacancy rate (average vacancy for the year) should be used for Year 1 in the pro forma? Assume 100% occupancy once fully leased up. (CAUTION: The question asks for the VACANCY percent, NOT occupancy percent.) (
Fundamentals Of Construction Estimating
4th Edition
ISBN:9781337399395
Author:Pratt, David J.
Publisher:Pratt, David J.
Chapter18: Life-cycle Costing
Section: Chapter Questions
Problem 18RQ
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A developer is building a 60-unit apartment building. Construction will take 15 months covering all of Year 0 and the first 3 months of Year 1. Tenants will begin moving in the first day of Month 4. Lease up is expected to occur at a rate of 10 units per month until reaching full (100%) occupancy (e.g., 10 units occupied in Month 4, 20 units occupied in Month 5, etc.) What forecasted vacancy rate (average vacancy for the year) should be used for Year 1 in the pro forma? Assume 100% occupancy once fully leased up. (CAUTION: The question asks for the VACANCY percent, NOT occupancy percent.) (%)
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