Real Estate Math

A building with 12,000 sq ft of space rents for $15/sq ft/year with 8% vacancy. What is the annual EGI?

A$165,600✓ Correct
B$180,000
C$172,800
D$166,800

Explanation

PGI = 12,000 × $15 = $180,000. EGI = $180,000 × (1 − 8%) = $180,000 × 0.

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