Real Estate Math
A Minnesota commercial tenant occupies 3,500 square feet in a building of 20,000 rentable square feet. Their lease requires them to pay their pro-rata share of a $60,000 annual common area maintenance (CAM) charge. What is their annual CAM payment?
A$10,500✓ Correct
B$3,500
C$8,000
D$12,000
Explanation
Pro-rata share = Tenant SF / Total Building SF = 3,500 / 20,000 = 17.5%. CAM payment = $60,000 x 17.5% = $10,500. Pro-rata CAM charges are standard in commercial leases, particularly in retail and office buildings in Minnesota where multiple tenants share common areas.
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