Real Estate Math
A commercial building has 20,000 sq ft of rentable space. It is 90% occupied at $25/sq ft/year. Annual expenses are $180,000. What is the NOI?
A$270,000✓ Correct
B$450,000
C$270,000
D$320,000
Explanation
Occupied space = 20,000 × 0.90 = 18,000 sq ft. Gross income = 18,000 × $25 = $450,000. NOI = $450,000 − $180,000 = $270,000.
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