Real Estate Principles 3rd Edition by David Ling,Wayne Archer

Exercise 5

Assume the owners of a midsize office building recover all operating expenses from their tenants except management and administrative expenses. The total rentable area of the office building is 100,000 square feet. The total amount of operating expenses recoverable from tenants in the current year is $700,000. Tenant B occupies 10,000 square feet of the building and has an expense stop of $5.50 per square foot. How much of the building's reimbursable operating expenses will the owners recover from Tenant B