An owner of the Atrium Tower Office Building is currently negotiating a ten-year lease with ACME Consolidated Corp. for 20,000 rentable square feet of space.

• ACME would like a base rent of $20 per square foot with step-ups of $1 per year beginning one year from now. Atrium would provide full service under the lease terms.

Calculate the effective rent to the owner (after expenses) using a 10 percent discount rate.