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A tetal lesase for 10,000 square feet of rentable space is being negobated for at ive-year term. Opian A calls for a baserent of 542

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A tetal lesase for 10,000 square feet of rentable space is being negobated for at ive-year term. Opian A calls for a baserent of 542 per square foot for the coming veur wehstepups of 51 per year each year thereafter CAM charges are expexted to be $3 for the coming year and are forcasted to increase by 6 percent at the end of each year thereafter Opboi B calis for a lower base rent of $40 per square foot wich the same step- aps and CAM charges, but the tenant must pay owerage rentu pased on a percentage lease clause. The clusse specifies that the ferant must pay 8 percent on oross sates over a breakpoint fevel of $900.000 per year The owner believes that the tenant's gross sales wil be $867000 duang the fitst year but should increase at a rate of 10 percent perfyear eachyear thereaftec Required: a. If the pioperfy owner believes trat a 12 percent rate of refurn should be eamed annually on thats reat estate investement, which option is best for the omner of the refail center? b. Which option is best for the owner of the retall center, if sales are expected fo increase by 20 percent per year? Complete this question by entering your answers in the tabs below. If tha propery owner believes that a 12 percent rate of return should be eamed aranually on this real astate investrnect; phich opbien is best for tie owner of the retail center

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