Real Estate Math

A Washington commercial lease has a base rent of $15.50/SF/year. With an expense stop of $8/SF, the tenant pays operating expenses above the stop. If actual expenses are $11.50/SF, how much does the tenant pay in total per SF per year?

A$15.50
B$19.00✓ Correct
C$23.00
D$27.00

Explanation

Tenant's expense share = $11.50 − $8.00 = $3.50/SF. Total = $15.50 base + $3.50 expense = $19.00/SF.

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