Tower Properties has signed a six-year lease with the Cleveland Cavaliers for 12,000 square feet of usable area on three contiguous floors (floors 6, 7, and 8) of the tower building. Details are provided below. Tower owners also provided a $70,000 concession cash to be paid at the beginning of the lease

Lessie Cleveland Cavaliers

Lease Type Gross Lease

Lease Term 8 years

Usable area 12,000 square feet on 3 floors

Floor 6: Usable area = 3,000 square feet

Load Factor for the floor = 1.2

Rental Rate = $42 per square feet of rentable area

Rent going up by $2.00 every year

Floor 7: Usable area = 5,000 square feet

Load Factor for the floor = 1.35

Rental Rate = $47 per square feet of rentable area

Rent is held constant

Floor 8: Usable area = 4,000 square feet

Load Factor for the floor = 1.4

Rental Rate = $55 per square feet of rentable area

Rent going up by $1.00 every year

Atrium Load Factor 1.085

Concession $70,000 paid to Cavaliers at the start of the lease

Use the discount Interest rate of 12%.

Compute the Effective Annual Rate in dollars per rentable square foot for the total lease.

Show work. If done in excel, please show functions