A 20,000 sqft office building's first-year rental rate is $24/sqft/year. Assuming this is a gross lease and - Vacancy rate is expected to be 9% There will be no other income. Total operating expenses (CAM + insurance + tax) is 50% of the gross potential income. Management fee is additional 6% of gross potential income. What is the net operating income for the first year?
A 20,000 sqft office building's first-year rental rate is $24/sqft/year. Assuming this is a gross lease and - Vacancy rate is expected to be 9% There will be no other income. Total operating expenses (CAM + insurance + tax) is 50% of the gross potential income. Management fee is additional 6% of gross potential income. What is the net operating income for the first year?
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 9P
Related questions
Question
bb2.
![A 20,000 sqft office building's first-year rental rate is $24/sqft/year. Assuming this is a gross lease and -
Vacancy rate is expected to be 9%
There will be no other income.
Total operating expenses (CAM + insurance + tax) is 50% of the gross potential income.
Management fee is additional 6% of gross potential income.
What is the net operating income for the first year?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc0bd5277-b732-4ad2-9b74-b5ed7bcbaf40%2F09d7e096-8c24-47bb-81e6-481aae546e84%2Fthespmu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A 20,000 sqft office building's first-year rental rate is $24/sqft/year. Assuming this is a gross lease and -
Vacancy rate is expected to be 9%
There will be no other income.
Total operating expenses (CAM + insurance + tax) is 50% of the gross potential income.
Management fee is additional 6% of gross potential income.
What is the net operating income for the first year?
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
![EBK CONTEMPORARY FINANCIAL MANAGEMENT](https://www.bartleby.com/isbn_cover_images/9781337514835/9781337514835_smallCoverImage.jpg)
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT