Use beginning of period monthly lease payments. A prospective tenant for a 15000 square foot office space wants $7.00 psf more than you are willing to provide in tenant finish, plus a moving allowance of $10,000. You quoted a rate of $12.00 psf for base rent. Assuming a 5-year lease period you decide that you need to recover the additional TIs at 9% and the moving allowance at 11% over the term of the lease. At what square footage rate will you need to be in order to recover your costs?

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