Assume 5-year lease, CPI is 2%, and Discount rate is 6%: Lease 3: Gross lease with step:

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Assume 5-year lease, CPI is 2%, and Discount rate is 6%:

Lease 3: Gross lease with step:

Rent $40 psf with one $8 step in Y3

Owner pays all Opex

Expenses $18 psf in Y1 and increase by $1 psf each year

What is the average net rent psf ?

What is the effective net rent psf ?

What is the present value of the net rent psf ?

Related Book For answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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Posted Date: Feb 04, 2023 01:30 AM

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Assume 5-year lease, CPI is 2%, and Discount rate is 6%: Lease 3: Gross lease with step:

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Answer Average Net Rent psf 22 psf Effective Net Rent psf 2131 psf Present Value of Net R... View the full answer

Income Tax Fundamentals 2013

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