Question
Doctors wish to lease 4000 square feet in your shopping centre. They are willing to sign a 10 year lease at $30 psf. They want
Doctors wish to lease 4000 square feet in your shopping centre. They are willing to sign a 10 year lease at $30 psf. They want $50 psf of tenant improvements and expect 9 months of free rent. You propose a ten year lease with a 10% increase in rents in Year 6.What is the present value per square foot of the proposed deal? Your discount rate is 7% based on a cap rate of 5% and assumed growth rate of 2%. Report your answer with two decimal places.
Please create your own Excel model or use your calculator to determine the PV.
Select one:
a.
$148.45
cross out
b.
$150.12
cross out
c.
$141.10
cross out
d.
None of the above
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