A 20,000 sqft office building's first-year rental rate is $24/sqft/year. Assuming this is a gross lease and - Vacancy rate is expected to be 9% There will be no other income. Total operating expenses (CAM + insurance + tax) is 50% of the gross potential income. Management fee is additional 6% of gross potential income. What is the net operating income for the first year?

A 20,000 sqft office building's first-year rental rate is $24/sqft/year. Assuming this is a gross lease and - Vacancy rate is expected to be 9% There will be no other income. Total operating expenses (CAM + insurance + tax) is 50% of the gross potential income. Management fee is additional 6% of gross potential income. What is the net operating income for the first year?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 9P

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