Question: General An office building has 10,000 square feet. Average rent is $20 per foot. Average operating expenses ar

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answerhappygod
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Question: General An office building has 10,000 square feet. Average rent is $20 per foot. Average operating expenses ar

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Question:
General An office building has 10,000 square feet. Average rent
is $20 per foot. Average operating expenses are $10 per foot. The
average expense stop is $6 per foot. Every fifth year, a
5,000-square-foot tenant comes up for renewal and it costs $25 per
foot to replace the tenant (leasing commissions and tenant
allowance). Non-revenue-generating capital expenditures is $1 per
foot per year. What is the stabilized pre tax cash flow?
a) $105,000
b) $65,000
c) $25,000
d) $5,000
Please do not copy from answers. Otherwise I have to report the
answer.
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