Question
1. While negotiating with a restaurant you discover that most restaurants remain profitable as long as their occupancy costs are no more than 12% of
1. While negotiating with a restaurant you discover that most restaurants remain profitable as long as their occupancy costs are no more than 12% of total sales. Your rent is $25 PSF plus $6.75 in passthrough expenses for 2,000 SF. With the information given above, how much in sales does the restaurant need to generate to justify your rent?
2. You are about to renew a Tenant. They are currently paying $18 PSF base rent on 2,000 SF. If you are able to increase their rent to $24 PSF, how much value have you added to the shopping center at that point in time assuming a Cap Rate of 9%
3. While negotiating with a restaurant you discover that most restaurants remain profitable as long as their occupancy costs are no more than 12% of total sales. Your rent is $25 PSF plus $6.75 in passthrough expenses for 2,000 SF. With the information given above, how much in sales does the restaurant need to generate to justify your rent?
4. You rent a 5,000 SF space with a base rent of $25 PSF NNN plus $6.50 PSF for passthrough expenses, what is the total monthly rent not including taxes?
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