Assume 5 year lease, CPI is 2%, Discount rate is 7%:

Lease 3: Gross lease with step:

Rent $50 psf with one $10 step in Y3

Owner pays all Opex

Expenses $26 psf in Y1 and increase by $2 psf each year

What is the effective net rent psf ?

Group of answer choices

none of the choices are correct

$56.00

$25.86

$52.63