Real Estate Math
An Alaska commercial building has 10,000 rentable square feet. The annual rent is $18 per square foot. Annual operating expenses total $65,000. What is the NOI?
A$105,000
B$115,000✓ Correct
C$120,000
D$180,000
Explanation
Annual gross income = 10,000 sq ft × $18 = $180,000. NOI = $180,000 − $65,000 = $115,000. Using the values given ($18, $65,000), apply the appropriate formula.. The correct answer is $115,000.. This is a common calculation on the Alaska real estate exam.
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