Which building has lower Operating Expenses per square foot: Building A (75,000 SF, $180,000 electricity, $30,000 repairs, $150,000 taxes) or Building B (200,000 SF, $400,000 electricity, $55,000 repairs, $400,000 taxes)?

To determine which building has lower operating expenses per square foot, it's essential to calculate the total operating expenses and then divide that by the square footage of each building.

For Building A:

• Total operating expenses = Electricity + Repairs + Taxes = $180,000 + $30,000 + $150,000 = $360,000

• Operating expenses per square foot = Total expenses / Square footage = $360,000 / 75,000 SF = $4.80 per square foot.

For Building B:

• Total operating expenses = Electricity + Repairs + Taxes = $400,000 + $55,000 + $400,000 = $855,000

• Operating expenses per square foot = Total expenses / Square footage = $855,000 / 200,000 SF = $4.275 per square foot.

Comparing the two:

• Building A has operating expenses of $4.80 per square foot.

• Building B has operating expenses of $4.275 per square foot.

Since $4.275 is less than $4.80, Building B indeed has lower operating expenses per square foot. This calculation illustrates how building size and the distribution of operational costs can affect the overall cost efficiency of property management, making Building B