Real Estate Math

A Mississippi commercial lease requires the tenant to pay their pro-rata share of property taxes. The building has 40,000 SF total. The tenant leases 8,000 SF. Annual property taxes are $60,000. The tenant's annual tax obligation is:

A$12,000✓ Correct
B$7,500
C$15,000
D$6,000

Explanation

Tenant's pro-rata share = Tenant's space ÷ Total building SF = 8,000 ÷ 40,000 = 20%. Annual tax obligation = $60,000 × 20% = $12,000.

Related Mississippi Real Estate Math Questions

Practice More Mississippi Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Mississippi Quiz →