A 1,000 square foot office space is leased at $15.00/square foot during the first year with $2.00 step-up provisions each of the following years. The lease is gross with an expense stop set at $6.65/square foot, and yearly expenses/square foot are as follows: $6.00, $6.65, and $7.05. If the lease term is three years and the discount rate is 8%, what is the building worth?

a. $27,010 b. $26,693 c. $28,876 d. $26,567