independent work. Upon completion, please submit both your Word report and Excel file to Blackboard. Each of the five parts is worth 16 point each and the report is worth is worth 20 points. Effective Rent This project requires you to compute the effective rent for five alternatives for a five-year lease on 15,000 square feet of rentable space. Assume a discount rate of 8 percent. In your report, mention which rent type should be chosen to maximize the price per square foot. Part 1: Gross lease Rent will be $30.00 per rentable square foot each year. The lessor (owner) will be responsible for the payment of all operating expenses. Expenses are estimated to be $10.00 during the first year and will increase by $2.00 per year thereafter. (16 Points) Part 2: Gross lease with expense stop Rent will be $28.00 per rentable square foot per year with the lessor responsible for payment of recoverable operating expenses as identified in the lease, up to an expense stop of $10.00 per square foot. Lessee pays all expenses in excess of $10.00 per square foot. Expenses are estimated to be $10.00 during the first year and will increase by $2.00 per year thereafter. (16 Points) Part 3: Gross lease with step up rents Rent will be $15.00 per rentable square foot and will increase by $7.00 per square foot each year thereafter. Operating expense will be $10.00 per square foot and will increase by $0.50 per year. (16 Points) Part 4: Gross lease with step up rents and expense stop Rents will be $22.00 per square foot and will increase by $2 per year. Operating expenses will be $10.00 and will increase by $2.00 per year. The tenant will pay (the owner will recover) all increases in operating expense above a $10.00 expense stop. (16 points) Part 5: Gross lease with expense stop and CPI adjustment Rent will be $20.00 per rentable square foot the first year and will increase by the full amount of any change in the CPI after the first year with an expense stop at $10.00 per square foot. The CPI is estimated to be 5% in year 2 and is estimated to increase at a rate of 25% per year (e.g. it will be 6.25% in year 3). Operating expenses are assumed to be $3 per square foot and will increase by $3 per year thereafter. (16 Points) s you in the do not sion for ariable uctions Submit End of