If Building A has Operating Expenses of $360,000 for 75,000 SF, what is the Operating Expense per square foot?

To determine the Operating Expense per square foot, you divide the total Operating Expenses by the total square footage of the building. In this case, Building A has Operating Expenses of $360,000 and comprises 75,000 square feet.

The calculation is as follows:

[

\text{Operating Expense per square foot} = \frac{\text{Total Operating Expenses}}{\text{Total Square Feet}}

]

Plugging in the values:

[

\text{Operating Expense per square foot} = \frac{360,000}{75,000} = 4.80

]

Thus, the Operating Expense per square foot for Building A is $4.80.

This is why $4.80/SF is the correct choice. The process of calculating this figure is essential for property management as it helps in budgeting, setting rental rates, and assessing property performance. Understanding this figure allows property managers to analyze costs relative to the size of the space and make informed financial decisions.