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Question
Expense: Calculation
Newco Real Estate owns a 100,000 square foot strip shopping center in New Jersey. The center is valued at $20,000,000. Security expenses are $50,000 per year; maintenance costs average $300,000 depending on snow fall. Insurance is $50,000 and administration is $20,000. Next year the center will need a new roof at an expected cost of $1,000,000. Annual Real Estate taxes are currently 2% of value. What are the annual operating expenses for the center per square foot.
Answer
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