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As a landlord, you sign a lease with a tenant to lease out 8,000 SF at the current market rate of $35/SF. The lease stipulates

As a landlord, you sign a lease with a tenant to lease out 8,000 SF at the current market rate of $35/SF. The lease stipulates a fixed-step rent structure with $1/SF rent increases each year. You anticipate that market rents will increase 3% per year (Fixed Step %). When building out your pro forma, will your Year 3 Loss to Lease be?

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