Simple Developer Math:
	Using Rents to Justify Total Costs
	and Using Costs to Justify Rents
	by Peter Allen
Rent Justified Costs
	Current Residential Rents	$20.00
	(plus utilities)
	Less Operating Expenses	-$5.00
	(taxes, insurance, maint.)
	Triple Net (NNN) Rents	$15.00
	Capitalized at 10%	$150.00
	Total Rent Justified Costs	$150.00	per sf
	If 10,000 sf bldg, then	$1,500,000
Cost Justified Rents
	Land Cost	$15.00
	Zoning, Site Plan, Environ	$10.00
	Construction Hard Costs	$120.00
	Soft Costs	$30.00
	Total Costs Per SF	$175.00
	Required NNN Rents at 10% Yield	$17.50	per sf