Property Valuation

A commercial real estate appraiser is analyzing a 20,000 sq ft retail center with a GRM of 8.5. Annual gross rents are $240,000. What is the indicated value using the GRM?

A$2,040,000✓ Correct
B$1,700,000
C$2,400,000
D$1,200,000

Explanation

Value = Annual gross rents × GRM = $240,000 × 8.5 = $2,040,000.

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