$2,630 psf That's the sale price per foot right?
Nope.
That's the lease price.
And I thought Walgreens paid a lot per foot for their NNN leases.
Based on below, how much would the building be worth if I rented a 1,000 sf building in Hong Kong Causeway Bay to Prada for the going rate of $2,630 psf? Let's assume NNN rent and going cap rate for such a primo location is 4% (which might be high!)
Annual rent: $2,630,000
Value at 4 cap: $65,750,000 for my 1,000 sf space
So... $65,750 psf to buy the space.
Makes Walgreens $300 to $400 psf look like a steal! Or Aspen at $1,000 psf is also a steal.
