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Please help me with these questions. The last screenshot is the chart where the answers go. The developer of a commercial building has 14,500 square
Please help me with these questions. The last screenshot is the chart where the answers go.
The developer of a commercial building has 14,500 square feet of vacant space and is presented with three lease proposals to fill the final 14,500 square feet of a 50,000 square foot commercial building all proposals commence July 1, 2023. As a development assistant you are being asked to evaluate each proposal and rank the proposals, 1,2 and 3 , with 1 the most financially sound and 3 having the most risk. Using Effective Rent as the primary decision tool, but also considering how each tenant supports the building's tenant mix (eco-system), credit quality and overall fit (how the tenant will use the space) to the building's success complete the table below. Use the Effective Rent Tool in the IREM Financial Analysis Spreadsheet for your calculations. The Building The new development is a 50,000 square foot commercial building with 35,500 square feet of space already committed to a lease. The current tenant mix is professional services, such as legal, accounting, insurance, financial management and consultants. The developer has established the following financial metrics: Lease Proposal #1 A professional engineering firm has presented a proposal to lease 14,500 square feet under the following business terms: A start-up financial planning firm has presented a proposal to lease 14,500 square feet of space under the following business terms: Lease Proposal 43 A third-generation land use planning firm has presented a proposal to lease 14,500 square feet of space under the following business terms: \begin{tabular}{|c|c|c|c|} \hline & Proposal \#1 & Proposal \#2 & Proposal \#3 \\ \hline TotalRentPaidfortheLeaseTerm & Q1 & Q7 & Q13 \\ \hline Totalcostofthetenantimprovementallowance & Q2 & Q8 & Q14 \\ \hline Commission Paid \end{tabular} The developer of a commercial building has 14,500 square feet of vacant space and is presented with three lease proposals to fill the final 14,500 square feet of a 50,000 square foot commercial building all proposals commence July 1, 2023. As a development assistant you are being asked to evaluate each proposal and rank the proposals, 1,2 and 3 , with 1 the most financially sound and 3 having the most risk. Using Effective Rent as the primary decision tool, but also considering how each tenant supports the building's tenant mix (eco-system), credit quality and overall fit (how the tenant will use the space) to the building's success complete the table below. Use the Effective Rent Tool in the IREM Financial Analysis Spreadsheet for your calculations. The Building The new development is a 50,000 square foot commercial building with 35,500 square feet of space already committed to a lease. The current tenant mix is professional services, such as legal, accounting, insurance, financial management and consultants. The developer has established the following financial metrics: Lease Proposal #1 A professional engineering firm has presented a proposal to lease 14,500 square feet under the following business terms: A start-up financial planning firm has presented a proposal to lease 14,500 square feet of space under the following business terms: Lease Proposal 43 A third-generation land use planning firm has presented a proposal to lease 14,500 square feet of space under the following business terms: \begin{tabular}{|c|c|c|c|} \hline & Proposal \#1 & Proposal \#2 & Proposal \#3 \\ \hline TotalRentPaidfortheLeaseTerm & Q1 & Q7 & Q13 \\ \hline Totalcostofthetenantimprovementallowance & Q2 & Q8 & Q14 \\ \hline Commission Paid \end{tabular} Step by Step Solution
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