Real Estate Math
A Texas commercial building has 20,000 rentable SF. Current rent is $18/SF/year and 85% is occupied. Annual operating expenses are $150,000. What is the NOI?
A$156,000✓ Correct
B$192,000
C$207,000
D$156,600
Explanation
Occupied SF = 20,000 × 0.85 = 17,000 SF. Annual rent = 17,000 × $18 = $306,000. NOI = $306,000 − $150,000 = $156,000.
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