A regional office of Zoom Inc. is expanding and is currently in the process of relocating to a new building. It is looking for 7,000square feet of usable office space for its 25 employees. A leasing broker shows Zoom Inc. space in a 20-story multi-tenantedoffice building. This building contains 800,000 square feet of gross building area. A total of 10,000 square feet is interior spaceand is non-rentable. The non-rentable space includes areas in the basement, elevator core, and other mechanical and structuralcomponents. There are 60,000 square feet of common area is the lobby area that can be used by all tenants and, of course, their business clients. The squarefootage that is exactly what Zoom Inc. is looking for is on the lucky thirteenth floor. The thirteenth floor contains 35,000 square feet of rentable area. Thereare other tenants on that floor already, and they occupy a combined total of 24,000 square feet of usable space. The leasing broker indicated to Zoom Inc.that base rents will be $10 per square foot per year of rentable area.(a) Fill out the table below for Zoom Inc. (Use commas to separate thousands and millions: e.g., put 1,000,000 rather than 1 000 000 or 1000000. Do not use"$" signs.)If not considering any common areasIf considering only common areas on the13th floorIf considering only common areas in the restof the buildingIf considering common areas on the 13thfloor and the rest of the buildingLoad Factor(round to 4decimals)Considering any common areas in any parts of thebuildingLoad FactorSq.ft. of rentable area(round to 4decimals)(round to wholenumber)Total annual rent dueSq.ft.of rentable area(round to wholenumber)(round to wholenumber)$Total annual rentdue(b) Now, consider the following additional scenario. Due to the prime location of this prospective new office building, Zoom Inc. is wondering whetherrelocating employees from its other local offices to this building might be a good idea. In this case, Zoom Inc. might be able to negotiate with the buildingowner that no existing tenants' leases get renewed upon expiration, so that Zoom Inc. can then move in and occupy the entire building as a single tenant. Fillout the table below for Zoom Inc. for this case. (Use commas to separate thousands and millions: e.g., put 1,000,000 rather than 1 000 000 or 1000000. Donot use "$" signs.)(round to wholenumber)$Rent per sq.ft. per year effectively paidfor the usable area(round to 2 decimals)$$zoomT$Rent per sq.ft. per year effectively paidfor the usable area(round to 2 decimals)$

It is the ratio of the actual usable area of a space to the total rentable area of that space. It…

zoom A regional office of Zoom Inc. is expanding and is currently in the process of relocating to a new building. It is looking for 7,000 square feet of usable office space for its 25 employees. A leasing broker shows Zoom Inc. space in a 20-story multi-tenanted office building. This building contains 800,000 square feet of gross building area. A total of 10,000 square feet is interior space and is non-rentable. The non-rentable space includes areas in the basement, elevator core, and other mechanical and structural components. There are 60,000 square feet of common area is the lobby area that can be used by all tenants and, of course, their business clients. The square footage that is exactly what Zoom Inc. is looking for is on the lucky thirteenth floor. The thirteenth floor contains 35,000 square feet of rentable area. There are other tenants on that floor already, and they occupy a combined total of 24,000 square feet of usable space. The leasing broker indicated to Zoom Inc. that base rents will be $10 per square foot per year of rentable area.

zoom A regional office of Zoom Inc. is expanding and is currently in the process of relocating to a new building. It is looking for 7,000 square feet of usable office space for its 25 employees. A leasing broker shows Zoom Inc. space in a 20-story multi-tenanted office building. This building contains 800,000 square feet of gross building area. A total of 10,000 square feet is interior space and is non-rentable. The non-rentable space includes areas in the basement, elevator core, and other mechanical and structural components. There are 60,000 square feet of common area is the lobby area that can be used by all tenants and, of course, their business clients. The square footage that is exactly what Zoom Inc. is looking for is on the lucky thirteenth floor. The thirteenth floor contains 35,000 square feet of rentable area. There are other tenants on that floor already, and they occupy a combined total of 24,000 square feet of usable space. The leasing broker indicated to Zoom Inc. that base rents will be $10 per square foot per year of rentable area.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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