Real Estate Math

An office building has 15,000 sq ft of leasable space at $18/sq ft/year with 8% vacancy. What is the annual EGI?

A$248,400✓ Correct
B$270,000
C$262,800
D$240,000

Explanation

Potential gross income = 15,000 × $18 = $270,000. Vacancy = $270,000 × 8% = $21,600.

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