1,000-square-foot office space is leased at $15.00 per square foot during the first year with $2.00 step-up provisions for each of the following years. The lease is gross with an expense stop set at $6.65 per square foot, and yearly expenses per square foot are as follows: $6.00, $6.65, and $7.05. The lease provides for two months of free rent at the end of the lease term. If the lease term is three years and the discount rate is 10%, what is the effective rent per square foot?

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Calculate the effective rent per square foot as follows A 1 2 Particulars 3 Total area for rent in s... View the full answer