Part 1 Rent Calculation

Assume the following for a floor in a multistory office building:

• total usable area: 62,500 sq ft;
• Total common area: 4,100 sq ft;
• total rentable area: 66,600 sq ft;
• Tenant As usable area: 4,250 sq ft.
• Tenant As annual rental rate is $19 per sq ft.

How much total rent does Tenant A pay per year?

Part 2 CAM

An office complex has the following operating expenses in year one

• janitorial $26,500
• insurance $24,500
• maintenance $24,015
• property taxes $13,653
• landscaping $8,282

The following tenants have agreed to reimburse for CAM expenses according to the following lease terms

• Office 1 (8,250 sq ft) Up to $1.25 psf
• Office 2 (2,450 sq ft) Up to $4.25 psf
• Office 3 (3,125 sq ft) Up to $4.98 psf
• Office 4 (2,600 sq ft) Up to $5.98 psf
• Deli (1,500 sq ft) Up to $2.85 psf

Please show me your work to answer these questions, highlight your answers.

1. What is the Op Ex for year one?
2. What will each tenant reimburse in year one?
3. At the end of year one, what will be the unreimbursed amount?