using gross potential or collectible rent total, what formula would i use to calculate the average rent?
Rachel, Are you asking how to calculate the total rental income for a property on a monthly or annual basis, or are you asking to how to determine the average rent rate as compared to comparable properties? Total Rental is calculated using an average of the last 12 months of rental income. Pro Forma rent is can be calculated using typical comparable rental rates (not listing rates) and apply it to the SF or the unit type of the property and calculating what the rents would be at a current rental rates. If by average rate you are trying to understand how a properties rent roll compares to market rents. For Industrial, office, and retail price/SF is used in the calculation. Industrial and Retail is fairly straight forward, total rent income divided by the SF provides a cost per foot number. Office typically has a load factor added to the number. load is additional percentage added to the actual SF of each unit to cover the common areas, lobby, halls, bathrooms etc. Typically the load fac
