- 105 - The County of San Mateo leased the East retail space for the period of March 2, 1987, to December 1, 1987. Rent was $4,720 per month, with the County of San Mateo paying utility expenses, including gas, electrical, and janitorial services. However, the Players were responsible for paying all real property taxes. Based on our finding of 5,086 rentable square feet, the rental rate paid by the County of San Mateo equates to $.93 (rounded) per square foot per month. We believe it is appropriate to estimate the value of the retail/office component of the Redwood City Fox by incorporating the actual income from the below-market Jacobs lease and from the County of San Mateo lease to calculate the total gross income of the property. We find that a vacancy and collection loss of 5 percent is appropriate under the circumstances to arrive at effective gross income. However, we agree with Carneghi that the vacancy and collection loss should not be deducted from the space subject to the Jacobs lease, because of the nature of the lease. From effective gross income, we agree with Mansbach that deductions for management expenses of 3 percent of effective gross income and for reserves of 2 percent of effective gross income are appropriate. We also find that a deduction for the real estate taxes the landlord must pay under the County of San Mateo lease to be appropriate.49 Finally, with respect to the 49 Based on information provided by Mansbach in his appraisal report, we estimate the deduction for the real estate taxes to be $4,067. We note that no deduction for real estate (continued...)Page: Previous 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 Next
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