Real Estate Math

A Wyoming commercial building has 10,000 sq ft of gross leasable area. If the building's annual operating expenses are $75,000, what is the expense ratio per square foot?

A$5.00/sq ft
B$6.50/sq ft
C$7.50/sq ft✓ Correct
D$10.00/sq ft

Explanation

Expense ratio per sq ft = Annual operating expenses / GLA = $75,000 / 10,000 = $7.50 per sq ft. Using the values given ($75,000,), apply the appropriate formula.. The correct answer is $7.50/sq ft.. This is a common calculation on the Wyoming real estate exam.

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