In a commercial building with 150,000 SF and rental rates of $20/SF, what is the Gross Potential Rental Income?

To determine the Gross Potential Rental Income for a commercial building, you multiply the total square footage of the building by the rental rate per square foot. In this case, the building has a total of 150,000 square feet, and the rental rate is $20 per square foot.

The calculation is as follows:

Gross Potential Rental Income = Total Square Feet × Rental Rate

Gross Potential Rental Income = 150,000 SF × $20/SF = $3,000,000

Therefore, the Gross Potential Rental Income for the commercial building is $3,000,000. This figure represents the total income that could potentially be generated from leasing the entire space at the stated rental rate, assuming all space is leased without any vacancies or concessions. Understanding this concept is essential in property management as it helps in assessing the financial performance of a property.