Real Estate Math

A Hawaii industrial property rents for $3.25/sq ft/month NNN. The building is 12,000 sq ft. What is the annual base rent?

AA. $432,000
BB. $468,000✓ Correct
CC. $390,000
DD. $39,000

Explanation

Monthly base rent = $3.25 × 12,000 sq ft = $39,000/month. Annual base rent = $39,000 × 12 = $468,000. In a NNN lease, the tenant pays base rent plus property taxes, insurance, and maintenance—so the landlord's net income is close to the base rent amount.

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