2. As CFO for Everything.Com, you are shopping for 5,000 square feet of usable office space for

25 of your employees in Center City, USA. A leasing broker shows you space in Apex Atrium,

a 10-story multitenanted office building. This building contains 300,000 square feet of gross

building area. A total of 45,000 square feet is interior space and is nonrentable. The nonrentable

space consists of areas contained in the basement, elevator core, and other mechanical

and structural components. An additional 30,000 square feet of common area is the lobby area

usable by all tenants. The 5,000 square feet of usable area that you are looking for is on the

seventh floor, which contains 28,000 square feet of rentable area, and is leased by other tenants

who occupy a combined total of 20,000 square feet of usable space. The leasing broker indicated

that base rents will be $30 per square foot of rentable area.

a. Calculate total rentable area in the building as though it would be rented to one tenant.

b. Calculate the load factor and common area on the seventh floor only.

c. Calculate the rentable area, including the load factor for common areas on the seventh floor

and the total rent per square foot that will be paid by Everything.Com for the coming year if

it chooses to lease the space.

d. Adjust (b) assuming that the owner adjusts the load factor for other common areas in the

building.

e. Calculate total rent per square foot, assuming that adjusted load factors are applied to usable

area for both the common areas in the building lobby and on the seventh floor.