Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Five years ago Kubendran entered into a 10-year lease on 45,000 square feet of industrial warehouse space at R2.50 per square foot. Now, market rent
Five years ago Kubendran entered into a 10-year lease on 45,000 square feet of industrial warehouse space at R2.50 per square foot. Now, market rent for comparable space over the next five years are R3.50 per square foot.
Suppose that Kubendran can find 45,000 square feet of alternative space that suits his needs for R3.00 per square foot over the next five years and that he has a new tenant willing to sublease his space for five years at current market rents. If its costs of moving will be R90,000, what is Kubendran's incremental return from moving and subleasing it's spaceStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started