Problem $12$

Calculate effective rent, assuming $5$ years and a $10\%$ interest rate.

a$.$ Net Lease with Steps. Rent in year $1$ is $$10$ and rent increases by $$1$ per year.

b$.$ Net Lease with Steps and Free Rent. Year $1$ is free rent, rent in year $2$ is $$10$ and rent increases

by $$1\mathrm{.}50$ per year thereafter.

c$.$ Net Lease with CPI Adjustment. Rent in year $1$ is $$10$ and CPI is anticipated be $3\%$ for the next

five years.

d$.$ Gross Lease. Rent is $$20$ per year. Operating expenses is $$5$ in year $1,$ and expected increase is

$$1\mathrm{.}25$ per year thereafter.

e$.$ Gross Lease with Expense Stop. Operating expenses is $$5$ in year $1,$ and expected increase is

$$1\mathrm{.}25$ per year thereafter. Expense stop is at $$7.$