Deal TWO C (tenant perspective)

• Lease Terms
• Rental Rate: $78 (5 years)/$83 (5 years)/$88 (5 years)
• Term- 15 years
• Size 10,000 sf
• Free Rent- 12 months free (inside term)
• Tenant Improvement- $80 sf
• Commission 4% for five years, 2% for five years, 1% thereafter
• Operating Expense Base Year/Stop $20.00 (3% growth)
• Amortization Rate 8%
• Electric of $2.50 psf (3% growth)
• Cleaning costs of $2 psf (3% growth)
• Out of Pocket Improvements $50 psf
• Calculate the following:

NPV

NPV/sf

Annual Rent Equivalent psf

Annual Rent Equivalent (total)

What is the Annual Rent Equivalent psf if it was Out of Pocket Improvements of $80 psf?