[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.Our answer matches Durrenberger's.

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

This work is licensed under a
Creative Commons License.

Arizona State University is located in Tempe, Arizona .

Tempe's main drag is Mill Avenue and Mill Avenue is home to ASU's Ira A. Fulton School of Engineering [ zoomed]