Real Estate Math
A Florida commercial building has 12,000 sq ft gross building area. Office spaces total 9,600 sq ft of rentable area. What is the building efficiency ratio?
A80%✓ Correct
B75%
C85%
D90%
Explanation
Efficiency ratio = Rentable area ÷ Gross building area = 9,600 ÷ 12,000 = 0.80 = 80%.
People Also Study
Related Florida Questions
- A Florida commercial building has 8,000 sq ft of rentable space and charges $22/sq ft/year. What is the annual gross rental income?Real Estate Math
- A Florida building has 24,000 gross sq ft. Rentable area is 20,400 sq ft at $24/sq ft/year. Annual gross rent is:Real Estate Math
- A Florida appraiser uses the 'gross building area' (GBA) in the cost approach for a commercial building. GBA differs from 'net rentable area' (NRA) in that GBA:Property Valuation
- A Florida commercial building has 20,000 square feet of leasable space at $18 per square foot annually. What is the annual gross rent?Real Estate Math
- A Florida appraiser is working on a commercial office building. Which valuation approach is likely to be given the most weight?Property Valuation
- A Florida property manager is hired to manage a commercial office building. The management agreement should specify all of the following EXCEPT:Property Management
- A Florida borrower's monthly gross income is $6,000. The lender's conventional loan guideline allows a maximum housing expense ratio of 28%. What is the maximum allowable monthly PITI payment?Finance
- A Florida office building generates a Net Operating Income (NOI) of $120,000 per year. Using a capitalization rate of 8%, what is the indicated value?Property Valuation
Key Terms to Know
Debt-to-Income Ratio (DTI)
A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Study This Topic
Practice More Florida Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Florida Quiz →