Use the following information about a net lease to answer this question.

Measurement7,500 rentable square feet

Base rent$12 per square foot annually 

Operating expenses$22,500 per year

Taxes$15,000 per year 

Cost of tenant improvements$20,000

Parking$2,000 per month (fixed over the life of the lease)

Cost of old lease buyout$20,000

Moving costs$10,000

Tenant-improvement allowance$2 per square foot

Free-rent First two months free (base rent only, not parking)

Moving allowance$7,500

Assume that the described lease has a term of five years. The consumer price index is 3 percent per year. Taxes and expenses escalate yearly at the consumer price index starting in year two. Rent escalates at 4 percent per year on the base rent only. The user’s discount rate is 11 percent.

What is the total effective rent?