Math in the Workplace: Overview

Math in the Workplace - Numbers & Operations

Problem:

A real estate manager has selected a location for a new grocery store. How would Management determine the total occupancy cost?

The building will be 55,922 square feet at a building cost of $50/sq.ft.

The land purchase is 250,000 square feet at a cost of $4.25/sq. ft.

However, the company will only use 240,000 square feet of the land (retained land) and the remaining amount will be sold as surplus land at the same rate as purchased.

Improvements to the site (site costs) will be $1.25/sq. ft.

Solution:  

Store Occupancy Costs

Total cost of retained land (ft2):	240,000 x $ 4.25 = $1,020,000
Site costs:	240,000 x $ 1.25 = 300,000
Building costs:	55,922 x $50.00 = 2,796,100
Total building and site-improvement costs:	$3,096,100
Total Cost of Project:	$4,116,100

Math in the Workplace: Overview