Value of Subletting - Assume that a tenant wants to sublet a portion of their space to another tenant. The current tenant is paying $20/PSF/YR, while the new sublet tenant would be paying $25/PSF/YR on 10,000 square feet of leasable space for 5 years. What is the PV of the increment paid by the new tenant to the existing tenant assuming a 10% discount rate?

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To calculate the present value PV of the increment paid by the new tenant to the ... View the full answer