Calculate the effective rental rate for Lease 2 from the following data?

The discount rate is 9%

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Total SF Leased Y1 (of lease) $SF/YR Rent Structure Annual Step Change Retail Lease ? Percentage Rent Rate Breakpoint Calculation Y1 Gross Sales Gross Sales Increase (annual) Free Rent (months) Free Rent Notes Total # Years in Lease # Years Remaining in Lease 1 $14.75 flat N/A No 5,000 1 @ beginning of lease only 7 3 2 6,500 $12.00 annual step $ per year $1 Yes 4% Natural $2,500,000 3% 0 N/A 3 2 Total SF Leased Y1 (of lease) $SF/YR Rent Structure Annual Step Change Retail Lease ? Percentage Rent Rate Breakpoint Calculation Y1 Gross Sales Gross Sales Increase (annual) Free Rent (months) Free Rent Notes Total # Years in Lease # Years Remaining in Lease 1 $14.75 flat N/A No 5,000 1 @ beginning of lease only 7 3 2 6,500 $12.00 annual step $ per year $1 Yes 4% Natural $2,500,000 3% 0 N/A 3 2

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Answer 1705 Explanation ... View the full answer