### Do the Math Yourself

[Friday, 18 February 2005::Arizona Republic::East Valley Opinions]
Dan Durrenberger wrote a column indicating that Arizona State University (ASU) should consider leasing out some of its lakefront property in Tempe.

Durrenberger offered two scenarios: selling land or leasing it.

With respect to selling the land, Durrenberger informs us that it may fetch `\$22` per square foot. ASU has `36.32` acres of land they could sell. He tells us that the land would fetch `\$34.8 million`. He then told us to do the math ourself.

Durrenberger provided help to those of us who opted to do the math. He informed us that `1 acre` equals `43,560 square feet`. I used Google's calculator to confirm Durrenberger's data.

```
43,560 sq. ft.
--------------  x  36.32 acres  =  1,582,099.20 sq. ft.
1 acre

\$22
1,582,099.20 sq. ft.  x  ---------  =  \$34,806,182.40
1 sq. ft.
```

He offered another example where the land sold for `\$30` per square foot. Do the math yourself.

With respect to leasing the land, Durrenberger informs us that `10%` of the cost of a square foot is an estimate of what ASU could lease the land for. He tells us that it would yield an annual revenue of `\$3.48`. He didn't tell us to do the math, but let's do the math anyway.

```   \$22 x 10% = \$2.20

\$2.20
1,582,099.20 sq. ft.  x   ---------  =  \$3,480,618.24
1 sq. ft.
```

Durrenberger pretends nothing will change for the next `30` years and that over this time period ASU will receive more that `\$142 million`. Do the math yourself to see if he is right.

Creator: Gerald D. Thurman [gthurman@gmail.com]
Created: 18 February 2005