An office complex has the following operating expenses in year one
janitorial $12,500
insurance $11,900
maintenance $14,059
property taxes $11,451
landscaping $5,534
The following tenants have agreed to reimburse for CAM expenses according to the following lease terms
Office 1 (5,000 sq ft) Up to $2.65 psf
Office 2 (4,000 sq ft) Up to $3.00 psf
Office 3 (4,000 sq ft) Up to $2.75 psf
Office 4 (3,000 sq ft) Up to $3.25 psf
Deli (2,000 sq ft) Up to $2.15 psf
What is the Op Ex for year one?
What will each tenant reimburse in year one?
At the end of year one, what will be the unreimbursed amount?
| Computation of operating expenses for year one | |
| Janitorial | $ 12,500.00 |
| Insurance | $ 11,900.00 |
| Maintenance | $ 14,059.00 |
| Property Taxes | $ 11,451.00 |
| Landscaping | $ 5,534.00 |
| Year-1 operating Expenses | $ 55,444.00 |
| Reimurshment of expenses by each tenant for year one | |
| Office-1 | $ 13,250.00 |
| Office-2 | $ 12,000.00 |
| Office-3 | $ 11,000.00 |
| Office-4 | $ 9,750.00 |
| Deli | $ 4,300.00 |
| Total Reimburshment | $ 50,300.00 |
| Unreimbursed Amount | $ 5,144.00 |
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