Budgeting for a commercial property is started months in advance and requires investigating various matters:

Part 1: name three items on an operating budget that need prior investigation in order to extrapolate a new proposed budget for a large shopping centre. assume that the centre has various sub budgets for the property manager to work on.

Part #2: revenue sources for the shopping centre is (all yearly):

Revenue:

total lease revenue: $340,000.

vending machines: 8,000.

vacancy allowance: $5,000.

expenses:

management fees: 10,000.

insurance: 10,000.

janitorial: 12,000

repairs and main. $9,000.

security: 3,000

hydro 7000

gas 8,000

owner’s debt servicing yearly of $60,000

(i) net projected income would be: ____

(ii) for an owner that has debt servicing of $50,000

consider, he/she needs the following occupancy to break even: ______%

Answer rating: 100% (QA)

Solution Part 1 The three items on operating budget which are needed prior ... View the full answer