Real Estate Math

A Michigan commercial property with 15,000 sq ft rents at $14/sq ft/year. Annual operating expenses are $95,000. What is the NOI?

A$115,000✓ Correct
B$210,000
C$95,000
D$125,000

Explanation

Annual gross rent = 15,000 x $14 = $210,000. NOI = $210,000 - $95,000 = $115,000.

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