Part 1 - Rent Calculation Assume the following for a floor in a multistory office building: total
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Question:
Part 1 - Rent Calculation
Assume the following for a floor in a multistory office building:
- total usable area: 62,500 sq ft;
- Total common area: 4,100 sq ft;
- total rentable area: 66,600 sq ft;
- Tenant A's usable area: 4,250 sq ft.
- Tenant A's annual rental rate is $19 per sq ft.
How much total rent does Tenant A pay per year?
Part 2 - CAM
An office complex has the following operating expenses in year one
- janitorial $26,500
- insurance $24,500
- maintenance $24,015
- property taxes $13,653
- landscaping $8,282
The following tenants have agreed to reimburse for CAM expenses according to the following lease terms
- Office 1 (8,250 sq ft) Up to $1.25 psf
- Office 2 (2,450 sq ft) Up to $4.25 psf
- Office 3 (3,125 sq ft) Up to $4.98 psf
- Office 4 (2,600 sq ft) Up to $5.98 psf
- Deli (1,500 sq ft) Up to $2.85 psf
Please show me your work to answer these questions
- What is the Op Ex for year one?
- What will each tenant reimburse in year one?
- At the end of year one, what will be the unreimbursed amount?
Related Book For
Real Estate Finance and Investments
ISBN: 978-0073377339
14th edition
Authors: William Brueggeman, Jeffrey Fisher
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