What would be the Potential Gross Income for a property renting at $1.00 per sq. ft. for a 3,800 sq. ft. building annually?

To find the Potential Gross Income (PGI) for the property, you multiply the rental rate per square foot by the total square footage of the building. In this scenario, the property rents for $1.00 per square foot, and the building has an area of 3,800 square feet.

Calculating the PGI involves the following steps:

1. Determine the annual rent per square foot: $1.00 per sq. ft.

2. Multiply this rate by the total area: $1.00 x 3,800 sq. ft. = $3,800 per month.

3. Since the question asks for the annual figure, multiply the monthly income by the number of months in a year: $3,800 x 12 months = $45,600.

Therefore, the Potential Gross Income for the property would be $45,600 annually, making this the correct answer. This calculation exemplifies how to assess rental income potential based on the area and rental rate, a crucial aspect of property valuation in appraisal practices.