EXERCISE 11.4 Rent in office buildings

Have your students answer the following true/false questions concerning office building rent.

1. Office building tenants typically pay percentage rent.
2. Office building leases usually contain a rent escalation clause.
3. Unlike with other kinds of commercial buildings, office building rent isnt usually expressed as a certain dollar amount per square foot.
4. The loss factor in an office building generally runs about 5%.
5. A new roof is the kind of cost that is invariably passed through to office tenants as part of rent.