Real Estate Math
An office park has 8 units, each with 2,500 sq ft. Tenant A leases 3 units, Tenant B leases 2 units, and Tenant C leases 1 unit. The remaining 2 units are vacant. If annual operating expenses are $48,000, what is each tenant's share of CAM charges based on occupancy percentage?
AA. Tenant A: $24,000, B: $16,000, C: $8,000
B$8,000.00000000000000000000000000000000000000000✓ Correct
CC. Tenant A: $16,000, B: $10,667, C: $5,333
DD. Tenant A: $20,000, B: $13,333, C: $6,667
Explanation
Total leased units = 6 (3+2+1). Total CAM base = occupied space 6 units.
People Also Study
Related Georgia Questions
- A commercial building has 25,000 sq ft of net rentable area. Base rent is $28/sq ft/year with annual NNN expenses of $8/sq ft. What is the tenant's total annual cost?Real Estate Math
- An office building has 20,000 sq ft of leasable space. 2,000 sq ft is vacant. What is the occupancy rate?Real Estate Math
- A tenant has a gross lease at $2,500/month. Annual operating expenses paid by the landlord are $15,000. What is the landlord's net annual income from this property?Real Estate Math
- A building has 10,000 sq ft of leasable space renting for $18/sq ft/year (NNN). Annual operating expenses paid by tenants are $4/sq ft. What is the landlord's annual gross rent?Real Estate Math
- A gross lease (used in residential rentals) means:Property Management
- An apartment complex with 200 units has 15 vacant units. The annual per-unit rent is $14,400. What is the annual income lost to vacancy?Property Management
- A commercial lease that requires the tenant to pay base rent plus a percentage of monthly sales revenue is called a:Property Management
- An income property has an effective gross income of $96,000 and operating expenses of $32,000. If the cap rate is 8%, what is the value?Real Estate Math
Key Terms to Know
Net Operating Income (NOI)
The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
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 Georgia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Georgia Quiz →