BOMA Standards - Study Session

Thursday's 04/18 free 6pm ET Zoom study session is titled, “BOMA Standards” Preview the question we’ll be covering below.

Find the Zoom link here: https://us02web.zoom.us/j/83922907346

A large online payments collections technology company will sign a 10-year lease to occupy a new purpose-built 21-story office building in a fast-growing southern city center. The company would like to get as many of their workers into that new building as practicable, and will be paying the building owner monthly rent based on net area, which doesn’t include circulation spaces, but includes all other areas in the floor plate. The architect’s current design involves a circulation factor of 38%. If the building’s floor plate is 12,000sf and the owner can expect a monthly rent of $62 per square foot over the span of the lease, how many additional dollars will the building owner earn over ten years if the architect designs to a tighter circulation factor of 28%?

Options

$38,402,000

$187,488,000

$291,396,000

$384,020,000