1-Assume the owners of a midsize office building recover all operating expenses from their tenants except management and administrative expenses. The total rentable area of the office building is 100,000 square feet. The total amount of operating expenses recoverable from tenants in the current year is $700,000. Tenant B occupies 10,000 square feet of the building and has an expense stop of $5.50 per square foot.

Required:

How much of the buildings reimbursable operating expenses will the owners recover from Tenant B?

2-Assume a small office building has a total usable area of 40,000 square feet and 5,000 square feet of common area. Tenant Z occupies 6,000 square feet of usable area.

Required:

What is Tenant Zs rentable area?

Note: Do not round intermediate calculation.