1. When the supply of space exceeds the demand, it is common for owners to provide the tenant with a period of free or perhaps reduced rent. This is commonly referred to as a(n):
Tenant improvement allowance
Concession
Sublease
Expense stop
2. The NOI is $1,000,000, the debt service is $950,000 of which $700,000 is interest, the depreciation expense is $250,000. What is the Before-tax Cash Flow to the equity investor (EBTCF) if there are no capital improvement expenditures or reversion items this period?
$50,000
$200,000
$300,000
$750,000