1. Assuming a 10% discount rate for each of the prospective anchor tenants, calculate their respective Present Value (PV) and Effective Rent. Tenant Improvements (TIs) and Leasing Commissions (LCs) are to be paid during the first year of the analysis (lease) period.
   1. Walgreens: Calculate both for the original 25-year term and then the entire 50-year term (i.e. inclusive of the extension options).
   2. Harbor Freight
   3. PetSmart
   4. Planet Fitness

Square feet 14,228 Rent Escalation Escalation years TI LC Term Discount Rate Walgreens $15.00 None $25.00 in Year 26 $35.00 3% first 25 years 25 or 50 10% Harbor Freight $18.75 2% annually $27.00 0% 15 10% PetSmart $18.50 2% annually $28.00 0% 10 10% Planet Fitness $21.00 10% every 5 years $44.00 0% 20 10% Year 0 5 6 8 Walgreens Base Rent Free Rent TI Allowance Leasing Commission Net Rent Year 0 4 5 6 8 7 213.420 $ $ 213.420 $ 213.420 $ 213.420 $ 213,420 $ 213,420 $ 213,420 $ 213.420 $ 213,420 Walgreens Base Rent Free Rent TI Allowance Leasing Commission Net Rent Present Value - Original Lease Effective Rent Present Value - Extensions Effective Rent Square feet 14,228 Rent Escalation Escalation years TI LC Term Discount Rate Walgreens $15.00 None $25.00 in Year 26 $35.00 3% first 25 years 25 or 50 10% Harbor Freight $18.75 2% annually $27.00 0% 15 10% PetSmart $18.50 2% annually $28.00 0% 10 10% Planet Fitness $21.00 10% every 5 years $44.00 0% 20 10% Year 0 5 6 8 Walgreens Base Rent Free Rent TI Allowance Leasing Commission Net Rent Year 0 4 5 6 8 7 213.420 $ $ 213.420 $ 213.420 $ 213.420 $ 213,420 $ 213,420 $ 213,420 $ 213.420 $ 213,420 Walgreens Base Rent Free Rent TI Allowance Leasing Commission Net Rent Present Value - Original Lease Effective Rent Present Value - Extensions Effective Rent