Real Estate Math

A commercial property in Fort Wayne has rent of $28 per square foot for 12,000 sq ft. Operating expenses are $168,000. What is the annual NOI?

A$156,000
B$168,000✓ Correct
C$142,800
D$336,000

Explanation

Annual rent = $28 × 12,000 = $336,000. NOI = $336,000 − $168,000 = $168,000. The correct answer is $168,000.

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