Real Estate Math
A commercial building is 15,000 square feet. The lease rate is $18 per square foot per year. Annual operating expenses paid by the tenant under a modified gross lease are $3 per square foot. What does the tenant pay annually in total?
A$270,000
B$315,000✓ Correct
C$225,000
D$312,000
Explanation
Base rent = 15,000 × $18 = $270,000. Operating expenses = 15,000 × $3 = $45,000.
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