What is the expected utility bill for the property

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Reference no: EM131867724

You own a small office building in Hoboken, NJ. There are five tenants that occupy a total of 10,000 square feet of rentable space. The lease of a tenant who currently leases 2,500 square feet of space will end in one year. You're not sure what they plan to do, but you think that is it more likely than not that they will vacate. Based on this, you think there is a 25% probability that they will renew. The market for the type of space offered is active and, if your tenant vacates, you think it will take about 3 months to find another tenant that will take the space. Whether the tenant renews or not, the base rent will be $30/sf.

A. What is the expected gross rent that you expect to receive for this space in the year after the tenant's lease matures?

B. What is the vacancy adjustment associated with this particular space?

C. What is the expected occupancy rate for the building if the remaining 7,500 square feet of rentable space if fully occupied?

D. If utilities are $2.10 per square foot and 40% fixed, what is the expected utility bill for the property?

Reference no: EM131867724

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