Question

A 3,000 square foot office space is leased for $17.00 per square foot. The space is vacant one month out of the year. Expenses total $22,500 for the year but an expense stop is in place that passes $4,500 of these expenses onto the tenant. What is the landlord's Net Operating Income

Answer 1

Answer: $28,750

Step-by-step explanation:

Landlord's Operating income = Revenue - Expenses

Revenue

= 3,000 * 17 * 11/12 months

= $46,750

Expenses

Expense stop passes $4,500 to tenant so;

= 22,500 - 4,500

= $18,000

Operating income = 46,750 - 18,000

= $28,750