1. A 325,000 sf office building is 25% vacant. The remaining occupied sf generates $9,000,000 in annual base rent from tenant leases in place. If annual market rents for comparable properties average $40.00/sf, and if market vacancy and credit loss represent a combined $800,000 in lost annual rent, what is the building's Gross Potential Revenue? Show your work.
1. A 325,000 sf office building is 25% vacant. The remaining occupied sf generates $9,000,000 in annual base rent from tenant leases in place. If annual market rents for comparable properties average $40.00/sf, and if market vacancy and credit loss represent a combined $800,000 in lost annual rent, what is the building's Gross Potential Revenue? Show your work.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter13: best-practice Tactics: Game Theory
Section: Chapter Questions
Problem 14E
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