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ffice building should last 60 years, but this will sell it at 20 years for 40% of its con- on cost. For the first 20 years it can be leased ass A space, which is all this owner operates. 0 When the building is sold, the land's cost will be recovered in full. Land $2.2M $4.1M $640,000 4% Building Annual operating and maintenance Annual property taxes and insurance (% of initial investment) (a) If th e owner wants a 12% rate of return, what is the required monthly leasing cost? suming that the building is vacant 5% of the time, what is the required monthly lease? t ner square foot