An XYZ company is selling their building to someone else.

the new owner wants to go for net rental. the previous owner had gross rental.

the new owner are willing to extent the lease for another 5 years with a 2% increase per year but its net rental basis and provide 4 months of free rental under Net.

so the question is would it be beneficial to go to net rental and extend the lease for another 5 years under net rental?

i have an option to keep the gross rental agreement for 5 years and at the end renegotiate another rental agreement or go with the net rental now and extent that for another 5 years.

which one should i pick gross or Net?

this is my work we are working on this problem in class right now. professor gave us 3 pages scenario and this is the question im trying to solve. im not copying anyone works.