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    Commercial Real Estate Net Operating Income calculation

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    Given the following information, what is the net operating income assuming below-line treatment?
    Property: 4 office units
    Contract Rents per unit: $2500 per month
    Vacancy and collection losses: 15%
    Operating expenses: 35%
    CAPEX: 10%

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    https://brainmass.com/business/accounting/commercial-real-estate-net-operating-income-calculation-196824

    Solution Preview

    5 An office property that has X# of office units, contract rents =$ per month, vacancy and collection loss =x%, operating expenses =x%. What is the NOI assuming cap x is below the line treatment? (Chapter 9 Quiz) Given the following information, what is the net operating income assuming below-line treatment? Property: 4 office ...

    Solution Summary

    The cited solution explains the formulas, the concept and then applies them to the problem information. Below-line treatment is identified and explained. This is a common calculation used for commercial properties.

    $2.19

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