Question
TTBC is a retail tenant and occupies 8718 of the building leased by LLBC. The lease is for 3 years with one additional 3-year renewal
TTBC is a retail tenant and occupies 8718 of the building leased by LLBC. The lease is for 3 years with one additional 3-year renewal option at a discounted rate noted on the breakdown below. The lease also offers TTBC with an inception date of Jan 1, 20X2 and 12 months free rent.\ \ This tenant is also on a gross lease, and the gross rent is broken down next.\ \ \ \ Year 20x2-\ \ Year 20X3 $4548449\ \ Year 20X4 $4,600,000\ \ \ \ Renewal Option \ \ Year 20X5 $3,000,000\ \ Year 20X6 $3,200,000\ \ Year 20X7 $4,600,000\ \ \ \ LLBC recognizes rental income on a straight-line basis over the lease term. What amount of rental income would LLBC recognize in year 20X4?
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