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Tema [17]
3 years ago
13

If a corporate building has nine office suites that rents for $14,800 per month each, but suffers from a 14% vacancy rate and an

nual expenses of $21,100, what is the NOI of the building
Business
1 answer:
tekilochka [14]3 years ago
4 0

Answer:

=$1,353, 524

Explanation:

NOI stands for net operating income

In this case, NOI will be calculated as follows

Rent per suit = $14,800

Number of suits 9

The monthly rent will be

=$14,800 x 9

=$133,200

Annual rent will be monthly rent x 12

= $133,200 x 12

=$1,598,400

Considering a 14 % vacancy rate, expected annual rent collection

=$1, 598,400 minus 14% of $1, 598,400  or 86% of $1, 598,400

= 86/100 x $1, 598,400

=$1,374,624

Adjusting for annual expenses

= $1,374,624 -  $21,100

=$1,353, 524

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