A property owner is evaluating the following alternatives for leasing space in his office building for the next five years:

Gross lease. Rent will be $32 per square foot each year with the lessor responsible for payment of all operating expenses. Expenses are estimated to be $9 during the first year and increase by $1 per year thereafter.

Calculate the effective rent to the owner (after expenses) for the lease using a 11 percent discount rate.