Question

You recently took over an indoor mall and you are concerned about leasing arrangements for retail space within the mall. The common area maintenance charges are estimated to be $8.00 per square foot per year. In-line tenants of the mall occupy 1.3 million square feet. The three anchor tenants occupy 800,000 square feet of space, and all of them have agreed to pay $2.00 per rentable square foot for the common area maintenance. The mall consists of a total of 2.8 million square feet. In order to cover all of the common area maintenance charges, how much does the owner have to charge the in-line tenants per square foot?

Answer 1