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Use the information provided below to calculate the Year 1 Effective Gross Income for the property that has been described. Type of Property: Office building
Use the information provided below to calculate the Year 1 Effective Gross Income for the property that has been described. Type of Property: Office building Leasable Space: 100,000 square feet Average year 1 rent is expected to be $20 per square foot per year. Vacancy and collection losses are expected to be 10% of potential gross income. Operating expenses are expected to be 45% of effective gross income. Capital expenditures are expected to be 3% of effective gross income. Note: Capital expenditures should be treated as an "above line" item in the cash flow statement. $1,764,000 O $1,656,000 O $1,800,000 $1,980,000
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