A property owner is evaluating the following alternatives for leasing space in his office building for the next five years:Net lease with steps. Rent will be $$15$Per square foot the first year and will increase by $$150$ Per square foot each year until the end of the Lease. All operating expenses will be paid by the tenant.Net lease with CPI adjustments. The rent will be $$16$ Per square foot the first year. After the first year, the rent will be increased by theAmount of any increase in the CPI. The CPI is expected to increase $3$ Percent per year.Gross lease. Rent will be $$30$ 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 $.$Gross lease with expense stop and CPI adjustment. Rent will be $$22$ the first year and increase by the full amount of any change in the CPI after the first year with an expense stop at $$9$ Per square foot. The CPI and operating expenses are assumed to change by the same amount as outlined above.

A$).$ Calculate the effective rent to the owner

$($After expenses$)$For each lease alternative using a $10$ Percent discount rate.

B$)$How would you rank the alternatives in terms of risk to the property owner?

C$)$Considering your answers to parts $($a$)$ and $($b$)$ How would you compare the four alternatives?