Expense Stop Formula IF(TenantStoppsf TenantCappsf,TenantCappsf*TenantSF,ActualOpExpsf*TenantSF) Natural Breakpoint Formula BaseRent/%Rent Percent Rent Formula IF(YearXSales>NatBreak,(YearXSales-NatBreak)*%Rent,0)+BaseRent Tenant Square Feet OpEx
Question:
Expense Stop Formula
IF(TenantStoppsf<=ActualOpExpsf,(ActualOpExpsf–TenantStoppsf)*TenantSF,0)
CAM Formula
IF(ActualOpExpsf>TenantCappsf,TenantCappsf*TenantSF,ActualOpExpsf*TenantSF)
Natural Breakpoint Formula
BaseRent/%Rent
Percent Rent Formula
IF(YearXSales>NatBreak,(YearXSales-NatBreak)*%Rent,0)+BaseRent
Tenant | Square Feet | OpEx Recapture | Rental Rate (sq ft per year) | Rent Increases per year |
Tenant 1 | 10,000 | Up to $5.00 per sq ft | $18.00 | 2.5% |
Tenant 2 | 5,000 | Up to $4.25 per sq ft | $10.00 | 3.5% |
Tenant 3 | 4,000 | Ex. Stop at $4 per sq. ft. | $18.50 | 2.0% |
Tenant 4 | 7,500 | Ex. Stop at $3.25 | $4 + 5% of sales (year 1 sales $600,000) sales growth of 5% per year | None |
Category | Year One Expense | Annual Increases |
Property Taxes | 25,000 | 2.50% |
Insurance | 40,000 | 3.50% |
Utilities | 75,000 | 2.75% |
Maintenance | 20,000 | 2.80% |
-Using excel construct a five-year hold cash flow analysis and using the Cap Rate of 7.5% provide a Purchase and Sale price.
Expert Answer:
Expense Stop Formula The expense stop formula is used to calculate the tenants stop amount if the actual operational expenses exceed the tenants stop amount The formula for expense stop is IFTenantSto... View the full answer
