What is the rent that the owner

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Office building, 3 stories, 3000 square feet (sf) gross interior floor space each, 2 tenants per floor, 1350 sf of the building is used for hallways, common bathrooms, stairs, elevator, and lobby. Owner wants a gross rent of $135,000 per year.

A. 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?

B. 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 9% CAP rate?

Reference no: EM132398388

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