ABSTRACT
This chapter discusses the final tool provided by the author for the conversion of expected total project cost into full service rent. Full service rent includes not only return of capital but also the cost of the annual cost of operation and maintenance during the rental period. Once people have computed the rental rate they now must determine if it is worth what the market will support. If the rent is too high they can go back through the models to adjust quantities of space, configuration, design parameters, system types and materials, soft costs, schedule, financing, and operating costs to see if people can lower the rent required and still achieve the project objectives. Fixed expenses are those expenses to own and manage a property even if it is not used or occupied. Such expenses include taxes, insurance, reserves for replacement, and property management are also examined in the chapter.
