Problem $9-2$

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.

Required:

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 that will be paid by

Everything. Com for the coming year if it chooses to lease the space.

d$.$ Calculate the load factor and common area on the seventh floor, assuming that the owner adjusts the load factor for other common

areas in the building.

e$.$ Calculate total rent, assuming that adjusted load factors are applied to usable area for both the common areas in the building lobby

and on the seventh floor.

Complete this question by entering your answers in the tabs below.

Required B

Required E

Calculate total rent, assuming that adjusted load factors are applied to usable area for both the common areas in the building

lobby and on the seventh floor.

Note: Do not round your intermediate calculations. Round you final answer to the nearest whole dollar.