Real Estate Math

A building has 10,000 square feet of rentable space. It is 90% occupied. The rent is $25 per square foot per year. What is the effective gross income from rent?

A$210,000
B$225,000✓ Correct
C$240,000
D$250,000

Explanation

Occupied space = 10,000 x 90% = 9,000 sq ft. EGI from rent = 9,000 x $25 = $225,000.

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