We are also optimistic about the improvement in operating margins as Zipcar transitions from leasing its vehicles to purchasing them and as revenue mix shifts towards higher membership fee.
First-class existing buildings are priced to yield only around 5% to an all-cash buyer, says research firm Green Street Advisors. (The return they talk about is rent minus the costs of operating and maintaining the building and leasing any empty space.) But a skillfully developed new property can bag an annual cash return of up to 10% of its construction costs.