In our example to estimate the total coast, we will assume that the facility is 30000 sq ft and occupied with 50% 3.3.2 Cost of The value of real estate is estimated as the ration of Net Operating Income (Excess of Gross Operating Income over Operating Expenses) and the Capitalization rate (Like P/E rate). The capitalization rate is a representation of the ratio of current valuation to expected return. The real estate value of commercial property is given by:- = NOI / Cap rate Realestate For a data center, however, a distinction is made between the total space, active space, and leased space However with the rate of occupancy of data centre space, the formula becomes: Cost = (NOI / sq ft) (A (% Occupancy) data centre) (Cap rate) The average rate renting space are shown the table blew Country Average rent (per sq ft) Lagos, Nigeria $6.48 8.00 – Accra, Ghana $3.7-5.1 Dakar, Senegal $ 5.5 7.8 – Cape Town, Africa $ 10 - 14 Average rent is Cost = (NOI / sq ft) (A (% Occupancy) Space data centre) (Cap rate) Assuming Cap rate as 10% and Operating Income as NIL, Average Rent = NOI
In our example to estimate the total coast, we will assume that the facility is 30000 sq ft and occupied with 50% 3.3.2 Cost of The value of real estate is estimated as the ration of Net Operating Income (Excess of Gross Operating Income over Operating Expenses) and the Capitalization rate (Like P/E rate). The capitalization rate is a representation of the ratio of current valuation to expected return. The real estate value of commercial property is given by:- Realestate = NOI / Cap rate For a data center, however, a distinction is made between the total space, active space, and leased space However with the rate of occupancy of data centre space, the formula becomes: Cost = (NOI / sq ft) (A data centre) (% Occupancy) (Cap rate) The average rate renting space are shown the table blew Country Average rent (per sq ft) Lagos, Nigeria $6.48 – 8.00 Accra, Ghana $3.7-5.1 Dakar, Senegal $ 5.5 – 7.8 Cape Town, Africa $ 10 - 14 Average rent is Cost Space = (NOI / sq ft) (A data centre) (% Occupancy) (Cap rate) Assuming Cap rate as 10% and Operating Income as NIL, Average Rent = NOI
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