Assume the lease in a single-office building expires in 12 months. You have offered a $28 renewal rate per square foot and you believe there is a 75% chance the tenant will renew. If the tenant does not renew, it will require 6 months to replace them, but the rate for a new tenant would be $30 per square foot. What is the appropriate projected lease revenue and turnover vacancy rate for the year following lease expiration?

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To calculate the projected lease revenue and turnover vacancy rate for the year following lease expi... View the full answer