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A retail tenant occupies 5,500 square feet in a 100,000 square foot shopping center. The lease calls for the tenant to pay a pro-ratashare of
A retail tenant occupies 5,500 square feet in a 100,000 square foot shopping center. The lease calls for the tenant to pay a pro-ratashare of common area maintenance expenses. In addition, an administrative fee of 10% should be paid (i.e., based on the common area maintenance expenses that the tenant should pay). Common area maintenance costs are estimated at $400,000. How much does the tenant pay in common area maintenanceand administrative fee on an annual basis?
A.$12.100
B.$6,050
C.$24,200
D.$400,000
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