Valuing an office building with a cap rate
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The prompt
A REIT in Singapore owns an office building with net operating income (NOI) of SGD 5 million a year. Similar buildings trade at a 7 percent cap rate. What is it worth? If interest rates rise and cap rates move to 8 percent, what is it worth, and by how much does the value change in percent?
Practice with a partner
1. Send the interviewer link to a friend. They read the case aloud and hold the answers.
2. You open the candidate view: you see only the prompt, a timer and a notes box.
3. Speak the case out loud. Your partner shares data when you ask, then scores you with the rubric.
Interviewer view
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Candidate view
For the person answering the case
Clarifying questions, with the interviewer's answers
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