Real Estate Investing Pro Rata Calculation Workout. If we look at our Workout tab we see that we have some facts about the building. We have three retailers and their square footage and they are triple net lease tenants. So what we have to do is figure out what their pro rata share is of the building and then apply that to the operating expenses to see what the landlord will be reimbursed for. So the first thing we notice is that the total of the net leaseable area for the three retailers is 13.5 and that matches our 13.5 at the top. So we can use either of those numbers to do this calculation. For each of the retailers, it will be the square footage of their particular space divided by the net leaseable area of the building. And we'll anchor that so we can copy down and we get our remaining pro rata percentages.

We can now apply those to the total operating expenses to find out what each retailer's share of the expenses will be. So in this situation we have the net operating income being the rental revenue minus the sum of the various operating expenses. The operating expenses total 18650. And now what we can do is simply apply each retailer's pro rata to the sum of these expenses. And if we anchor the expenses we'll be able to copy this down.

And in doing that, we get a total of the expenses of 18650, which matches the total of the expenses above.

I'll put my formulas out here to the right and we've done a pro rata calculation.