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stabilized vacancy and collection loss within the historical range is usually applied, <br />assuming a five- to 10 -year holding period. An estimated stabilized vacancy and <br />collection loss of 3% is considered appropriate for the direct capitalization analysis. <br />Expense Analysis <br />The subject property is an owner -user office building. Typically, leases for <br />similar buildings in this market are written on a triple -net lease basis, where the tenant <br />is responsible for operating expenses for the property including: taxes, insurance, <br />utilities, common area maintenance, building repairs and maintenance. The owner is <br />responsible for management, miscellaneous expenses, and administrative costs. The <br />capital value analysis has been analyzed on a typical triple -net basis. <br />Overall Capitalization Rate <br />A review of sales and listings of office properties found that reported OARs <br />reflect rates from 4.00% to 5.87 %. These sales are considered the best evidence of <br />an appropriate capitalization rate for the subject property. <br />75C -15 <br />