Given the following scenario- Office building, 3 stories, 3000 square feet (SF) gross interior floor space each, 2 tenants per floor, 1 350 sf of the building is used for hallways, common bathrooms, stairs, elevator, and lobby. The owner wants a gross rent of $135,000 per year. (First, establish the Load Factor) What is the rent that the Owner should charge per square foot? If Tenant Z rents 1200 sf of usable area, what will be his monthly rent? If the building has an operating expense ratio of 28% of gross rents, including vacancy and reserves, what is the Net Operating Income? The sale price at a 9% CAP rate?
Given the following scenario- Office building, 3 stories, 3000 square feet (SF) gross interior floor space each, 2 tenants per floor, 1 350 sf of the building is used for hallways, common bathrooms, stairs, elevator, and lobby. The owner wants a gross rent of $135,000 per year. (First, establish the Load Factor) What is the rent that the Owner should charge per square foot? If Tenant Z rents 1200 sf of usable area, what will be his monthly rent? If the building has an operating expense ratio of 28% of gross rents, including vacancy and reserves, what is the Net Operating Income? The sale price at a 9% CAP rate?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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- Given the following scenario-
- Office building, 3 stories, 3000 square feet (SF) gross interior floor space each, 2 tenants per floor, 1
- 350 sf of the building is used for hallways, common bathrooms, stairs, elevator, and lobby.
- The owner wants a gross rent of $135,000 per year.
(First, establish the Load Factor)
- What is the rent that the Owner should charge per square foot? If Tenant Z rents 1200 sf of usable area, what will be his monthly rent?
- If the building has an operating expense ratio of 28% of gross rents, including vacancy and reserves, what is the Net Operating Income?
- The sale price at a 9% CAP rate?
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