Question 101 pts

[The information presented here applies to questions 10 and 11.] The lease for a tenant occupying 18,000 square feet is expiring next year and you're not sure if they plan to renew or not. If they renew, you will offer them $6/sf for tenant improvements. If the tenant leaves, you expect that you will have to offer a new tenant $20/sf. If you estimate the likelihood of your tenant's renewal to be 90%, what is the expected TI expense?

Flag question: Question 11

Question 111 pts

You expect to receive market rent of $35/sf for the space next year, regardless of whether your existing tenant renews or not. The brokerage fee for a new tenant is 15% of the first year's rent and 10% for a renewing tenant. What is the expected brokerage fee?

Flag question: Question 12

Question 121 pts

You have just purchased an office property for $7,500,000. What is the initial cap rate associated with this purchase is NOI in year 1 is $637,500?