Question: A / an 7 0 0 square metres [ m 2 ] office building can be rented for $ 3 4 0 per m 2

A/an 700 square metres [m2] office building can be rented for $340 per m2 annually on a gross lease basis in the first year. Annual vacancy is projected to be 10%. Additional income is generated through the car park rental at a monthly rate of $105 per car park. There are 4 car parks available and all of them have been rented. Annual fixed operating expenses are $45 per m2 and variable expenses are $60 per m2. Estimate the amount of the Net Operating Income [NOI] in the first year for the whole building. Enter your answer rounded to the nearest whole dollar [e.g.123].

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!