You manage Sky Towers, a mixed use building with 100 apartment units and four office floors....

 

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You manage Sky Towers, a mixed use building with 100 apartment units and four office floors. Each office floor has 5,000 rentable square feet. You recently conducted a comp grid analysis which told you that your apartment unit rates are at market. Market rent for the comparable office space is $17.75/SF annual. The breakdown of apartment units and rental rates is as follows: • 50 one-bedroom units @ $850/month 30 two-bedrooms units @ $1,300/month 20 three-bedrooms units @ $1,650/month Most commercial tenants at Sky Towers pay the market rent of $17.75/SF annual. One tenant, however, who rents all of floor three, leased the space at $15.75/SF annual. Sky Towers is located in a prosperous part of downtown. Average vacancy and collection loss is 7% (of GPI). 1. Calculate the gross potential income (GPI) for Sky Towers. 2. Calculate the loss to lease for Sky Towers. 3. Calculate the vacancy and collection loss at Sky Towers. 4. What is the net rent revenue at the property? You manage Sky Towers, a mixed use building with 100 apartment units and four office floors. Each office floor has 5,000 rentable square feet. You recently conducted a comp grid analysis which told you that your apartment unit rates are at market. Market rent for the comparable office space is $17.75/SF annual. The breakdown of apartment units and rental rates is as follows: • 50 one-bedroom units @ $850/month 30 two-bedrooms units @ $1,300/month 20 three-bedrooms units @ $1,650/month Most commercial tenants at Sky Towers pay the market rent of $17.75/SF annual. One tenant, however, who rents all of floor three, leased the space at $15.75/SF annual. Sky Towers is located in a prosperous part of downtown. Average vacancy and collection loss is 7% (of GPI). 1. Calculate the gross potential income (GPI) for Sky Towers. 2. Calculate the loss to lease for Sky Towers. 3. Calculate the vacancy and collection loss at Sky Towers. 4. What is the net rent revenue at the property?

Answer rating: 100% (QA)

1 Gross Potential Income GPI The GPI is the total rental income that could be earned if every unit w... View the full answer