Real Estate Math
A Minnesota property owner is negotiating a commercial lease at $22/sq ft/year for 3,500 square feet. What is the annual base rent?
A$66,000
B$6,417✓ Correct
C$88,000
D$55,000
Explanation
Annual base rent = Rate per sq ft x Square footage = $22 x 3,500 = $77,000. Understanding commercial lease calculations is important for the Minnesota real estate exam. Commercial rents are typically quoted as annual dollar amounts per square foot, while monthly payments would be $77,000 / 12 = $6,416.67.
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