Valuing New Office Construction, Cap Rates

[Zack Tomlin]

Hello All,

Does anyone have any guidance on how new spec office construction gets valued. I read a lot about cap rates but have to think that the value is also significantly impacted by the age of it's major systems/components (e.g. elevator, hvac, lighting, etc). Most articles I read would have you thinking that a 2 year old building, and a 15 year old building with the same NOI would have the same value.

Thanks in advance.