Real Estate Math
A Texas commercial building has 8,000 SF. It is leased at $22/SF/year. The operating expense ratio is 35%. What is the NOI?
A$114,400✓ Correct
B$126,000
C$140,800
D$176,000
Explanation
Gross income = 8,000 × $22 = $176,000. Operating expenses = $176,000 × 0.35 = $61,600. NOI = $176,000 − $61,600 = $114,400.
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