• I think it's the wording used "pedestrian mall" implying that it will be mostly area for walking... again it is not clear but that is nothing new with the exam questions

• My understanding is, since we are talking about the rentable area, so 6% pedestrian will not count while considering net rentable area.

75% =net area/gross area,

assume, X= net rental area;

so, X = [net area - (.06x 85,000)] = Ans.

• yes but the question does not make any mention of the 6% pedestrian being net rentable area. Is there something I am missing.

• sorry I meant it does not make any mention of what the 6% pedestrian represents, so one has to guess its function in relation to gross or net area. this is what makes it confusing

• The question states the total gross SF at 85,000 and states the pedestrian mall is 6% of the building (not of net SF)

it goes on to state the efficient ratio is 75% (that is net/gross = .75) and asks how much rentable area is available. If businesses and shops are unable to rent within the pedestrian zone, you must deduct the 6% from the gross prior to calculating the net rentable.

85,000 x .94 = 79,900 gross SF of entire building minus pedestrian mall

79,900 SF x .75 = 59,925 net rentable SF

Solution: A) 59,900 SF

• Just imagine any mall, stores are paying for the their tenant space, they don't lease the pedestrian access to the store itself. Thus, the 6% needs to come out to calculate the net area of those tenant spaces.

• I did this a bit differently but came out with the same answer..... is there legitimately more than one way to skin this cat??

85,000 x .06 = 5,100     (to remove the 'pedestrian paths')

85000 - 5,100 = 79,990    (new building gross)

79,990 x .25 (inverse of 75%) = 19,975   (efficiency ratio)

79,990 - 19,975 = 59,925    (removed efficiency to find net)