Real Estate Math
A Colorado commercial property has 10,000 rentable square feet, rented at $18/sq ft/year on a net basis. The vacancy is 8%. What is the effective gross income?
A$165,600✓ Correct
B$175,000
C$180,000
D$195,000
Explanation
Potential gross income = 10,000 × $18 = $180,000. Vacancy loss = $180,000 × 8% = $14,400. Effective gross income = $180,000 − $14,400 = $165,600.
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