Real Estate Math
A Nebraska office building with 24,000 rentable sq ft has a 12% vacancy. Occupied space rents for $22/sq ft/year. What is the effective annual gross income?
A$464,640✓ Correct
B$528,000
C$475,200
D$443,520
Explanation
Occupied = 24,000 × (1 − 0.12) = 24,000 × 0.88 = 21,120 sq ft. EGI = 21,120 × $22 = $464,640. To solve this, multiply the relevant values: $22 at 12%.. The correct answer is $464,640.. This is a common calculation on the Nebraska real estate exam.
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