How much is a tenant paying per square foot per year if they pay $1,400 per month for a 1,400 sq.ft. office?

To determine the cost per square foot per year, you first need to calculate the annual rent from the monthly payment. Multiply the monthly rent by 12 to convert it to a yearly figure. Therefore, for a tenant paying $1,400 per month, the annual payment is $1,400 multiplied by 12, which equals $16,800.

Next, you need to divide this annual rent by the total square footage of the office space. In this case, the office is 1,400 square feet. So, you take the annual rent of $16,800 and divide it by 1,400 square feet.

Calculating this gives you $16,800 ÷ 1,400 = $12 per square foot per year. Thus, the correct answer indicates that the tenant is paying $12 for each square foot on an annual basis, accurately reflecting how rental costs are typically assessed in commercial real estate.