Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

As CFO for Everything.Com, you are shopping for 5,500 square feet of usable office space for 25 of your employees in Center City, USA.

image text in transcribed

As CFO for Everything.Com, you are shopping for 5,500 square feet of usable office space for 25 of your employees in Center City, USA. A leasing broker shows you space in Apex Atrium, a 10-story multitenanted office building. This building contains 330,000 square feet of gross building area. A total of 49,500 square feet is interior space and is nonrentable. The nonrentable space consists of areas contained in the basement, elevator core, and other mechanical and structural components. An additional 33,000 square feet of common area is the lobby area usable by all tenants. The 5,500 square feet of usable area that you are looking for is on the seventh floor, which contains 30,800 square feet of rentable area, and is leased by other tenants who occupy a combined total of 22,000 square feet of usable space. The leasing broker indicated that base rents will be $30 per square foot of rentable area. Required: a. Calculate total rentable area in the building as though it would be rented to one tenant. b. Calculate the load factor and common area on the seventh floor only. c. Calculate the rentable area, including the load factor for common areas on the seventh floor and the total rent that will be paid by Everything.Com for the coming year if it chooses to lease the space. d. Calculate the load factor and common area on the seventh floor, assuming that the owner adjusts the load factor for other common areas in the building. e. Calculate total rent, assuming that adjusted load factors are applied to usable area for both the common areas in the building lobby and on the seventh floor. Complete this question by entering your answers in the tabs below.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

An Introduction to Investment Banks, Hedge Funds, and Private Equity

Authors: David P. Stowell

1st edition

978-0123745033, 0123745039, 978-9380931074

More Books

Students also viewed these Finance questions