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A 5-year lease is being signed with a tenant who will pay base rent of $20.00psf in Year 1, increasing by $1.00psf each year thereafter.
A 5-year lease is being signed with a tenant who will pay base rent of $20.00psf in Year 1, increasing by $1.00psf each year thereafter. The tenant will receive a rent abatement of $10.00psf in Year 1 and $11.00psf in Year 2. Expenses are $4.50psf in Year 1 increasing by $0.50psf each year thereafter. An Expense Stop of $5.00psf is built into the Lease and is effective starting Year 1. Assuming a Discount Rate of 10.00% to reflect the risk associated with this lease, calculate the Effective Rent for this Tenant.
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