Office building, 3 stories, 3000 square feet (s.f.) gross interior floor space each, 2 tenants per floor. 1350 s.f. of each floor is used for common areas such as hallways, common bathrooms, stairs, elevator, and lobby. The owner wants a gross rent of $135,000 per year.

What is the rent that the Owner should charge per square foot? If Tenant Z rents 1200 s.f. of usable area, what will be his monthly rent? If the building has an operating expense ratio of 28% of gross rents, including vacancy and reserves, what is the Net Operating Income? The sale price at a 9% CAP rate?

How much principal is paid on the property loan each year?

Where does the money come from to pay the balance of the building loan back at sale time if the profit is only $642,940 after taxes are paid?