You set up a space absorption profile for 10,000 SF of vacant space, each lease will comprise of 2,000 SF, with the first lease starting on 5/1/2016, followed by additional leases every 3 months. Assuming all spaces are available starting 1/1/2016 and gross potential rent is $24/SF/Yr, what is the total vacancy loss for the 1st speculative lease in 2016?

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter11: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 2DQ: A company could sell a building for 250,000 or lease it for 2,500 per month. What would need to be...
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You set up a space absorption profile for 10,000 SF of vacant space,
each lease will comprise of 2,000 SF, with the first lease starting on
5/1/2016, followed by additional leases every 3 months. Assuming all
spaces are available starting 1/1/2016 and gross potential rent is
$24/SF/Yr, what is the total vacancy loss for the 1st speculative lease in
2016?
Transcribed Image Text:You set up a space absorption profile for 10,000 SF of vacant space, each lease will comprise of 2,000 SF, with the first lease starting on 5/1/2016, followed by additional leases every 3 months. Assuming all spaces are available starting 1/1/2016 and gross potential rent is $24/SF/Yr, what is the total vacancy loss for the 1st speculative lease in 2016?
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