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A 1,000 square foot office space is leased for 3 years. The initial rent is $22.00 per square foot during the first year with $2.00
A 1,000 square foot office space is leased for 3 years. The initial rent is $22.00 per 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 $5.65 per square foot, and yearly expenses per square foot are as follows: $6.00, $6.65, and $7.05. If the lease term is three years and the discount rate is 7%, what is the effective rent per square foot?
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