1)    Office properties in the downtown area have recently been selling at a 12 percent capitalization rate. A subject office property has net operating income of $1.5 million. What is this property’s indicated value using the income approach?  

      The following adjustments are applicable:

         House size: $50 per square foot;

         Lot size: $1.25 per square foot;

         Bedrooms: $4,000 each;

         Half bathroom: $750 each;

         Brick exterior: $4,500 more than a frame exterior;

         Excellent condition: $3,000 more than “good” condition.