[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
$22per square foot. ASU has
36.32acres 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
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
$30per 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
30years 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
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]