A restaurant is interested in renting $2,000$ SF of space in a strip shopping center and is considering two locations. The first landlord has offered a $$25$ SF NNN lease rate in a $10,000$ SF building were operating expenses are currently $$50,000$ per year in total. Tenants are required to pay reimbursements based on their pro rata share and the building is currently $90\%$ occupied.

$$ What is their pro rata share of OPEX $(\%$ and $$)?$

$$ What impact does the current vacancy rate have on the OPEX?

The second landlord has offered a $$23\mathrm{.}50$ SF NNN lease rate in a $12,000$ SF building were operating expenses are currently $$66,000$ per year in total. Tenants are required to pay reimbursements based on their pro rata share.

$$ What are the OPEX on a PSF basis for both locations?

$$ What are the total costs per square foot for each location?