Rent is $39/sq ft and increases by $2/sq ft each year thereafter. Operating expenses are $20/sq ft, increasing by $1/year.

Question: Rent is $39/sq ft and increases by CPI index 3% each year thereafter. Operating expenses are $20/sq ft, increasing by $1/year. What is the effective rent for each year?

\begin{tabular}{|c|c|c|c|c|c|c|} \hline Year & O & 1 & 2 & 3 & 4 & 5 \\ \hline \multicolumn{7}{|l|}{GrossLease-StepUpRents} \\ \hline Gross rent & & 39.00 & 41.00 & 43.00 & 45.00 & 47.00 \\ \hline Less:OperatingExpenses & & 20.00 & 21.00 & 22.00 & 23.00 & 24.00 \\ \hline Add: Recoveries & & -- & -- & -- & -- & -- \\ \hline Net rent & & 19.00 & 20.00 & 21.00 & 22.00 & 23.00 \\ \hline Average net rent & 21.00 & & & & & \\ \hline Present value & 78.89 & & & & & \\ \hline Effective net rent & 20.81 & & & & & \\ \hline \end{tabular}