Question
As Omni Consulting Groups Southeast Director of Real Estate Operations, you are hunting for 7,500 square feet of usable office space for a new branch
As Omni Consulting Groups Southeast Director of Real Estate Operations, you are hunting for 7,500 square feet of usable office space for a new branch office for 20 of your employees in Mobile, Alabama. A commercial real estate leasing broker shows you a 7-story multi-tenant office building with 250,000 square feet of gross building area. 50,000 square feet is nonrentable interior space. Another 50,000 square feet is common area usable by all tenants. The 7,500 square feet of usable area that you seek is on the 2nd floor, which contains 21,500 square feet of rentable area, and is leased by other tenants who occupy a combined total of 12,000 square feet of usable space. The broker indicates that the base rents will be $22 PSF of rentable area. a. Calculate the total rentable area in the building as though it would be leased to one tenant b. Calculate the load factor and common area on the 2nd floor only. c. Calculate the rentable area, including the load factor for common areas on the 2nd floor. Also calculate the total rent per square foot Omni Consulting Group will pay for the coming year if it chooses to lease the space. d. Adjust (b) assuming that the owner adjusts the load factor for other common areas in the building. e. Calculate total rent per square foot, assuming that adjusted load factors are applied to usable area for both the common areas in the building lobby and on the 2nd floor.
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