When the supply of space exceeds the demand

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Reference no: EM131359781

1. When the supply of space exceeds the demand, it is common for owners to provide the tenant with a period of free or perhaps reduced rent. This is commonly referred to as a(n):

Tenant improvement allowance

Concession

Sublease

Expense stop

2. The NOI is $1,000,000, the debt service is $950,000 of which $700,000 is interest, the depreciation expense is $250,000. What is the Before-tax Cash Flow to the equity investor (EBTCF) if there are no capital improvement expenditures or reversion items this period?

$50,000

$200,000

$300,000

$750,000

Reference no: EM131359781

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