Question
Question: General An office building has 10,000 square feet. Average rent is $20 per foot. Average operating expenses are $10 per foot. The average expense
Question:
General An office building has 10,000 square feet. Average rent is $20 per foot. Average operating expenses are $10 per foot. The average expense stop is $6 per foot. Every fifth year, a 5,000-square-foot tenant comes up for renewal and it costs $25 per foot to replace the tenant (leasing commissions and tenant allowance). Non-revenue-generating capital expenditures is $1 per foot per year. What is the stabilized pre tax cash flow?
a) $105,000
b) $65,000
c) $25,000
d) $5,000
Please do not copy from chegg. Otherwise I have to report the answer.
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