- 53 -
on a fully serviced basis. Full service operating expenses were
estimated at a rate of $.30 per square foot per month. Due to
its lower ceiling height and because it would have to be rented
in conjunction with the ground floor retail space,
Mitten/Reynolds concluded that the mezzanine space would command
less rent. Mitten/Reynolds estimated the market rental rates for
the different areas of the retail/office portion of the property
as follows:
3rd Floor $1.35
2nd Floor $1.35
Mezzanine $1.00
1st Floor $1.35
Mitten/Reynolds did not consider the lease of the property in
1984 by the County of San Mateo in their analysis. Though not
entirely clear from the record, it does not appear that
Mitten/Reynolds considered the lease of the property by the
County of San Mateo in 1987 either.
Mitten/Reynolds estimated the net operating income for the
retail/office space28 as follows:
Income per Month
3rd Floor: 876 sq.ft. x $1.35 $ 1,183
2nd Floor: 6,090 sq.ft. x $1.35 8,221
Mezzanine: 4,649 sq.ft. x $1.00 4,649
1st Floor: 4,676 sq.ft. x $1.35 6,313
Total 16,291 sq.ft. $ 20,366
x 12 months
Total per annum $244,392
Vacancy/Collection Loss (10%) 24,439
Total Collections $219,953
Expenses
28 Mitten/Reynolds used the rentable square footage
determined by Ingram/Ewing in their report.
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