What is the net effective rent of the following lease using a 10% IRR? Four year gross step up lease with expense stops. Year One gross annual rents of $22.00/sq.ft., increasing 3% each year of the lease beginning Year Two. Annual operating expense of $11.00 beginning Year One, increasing 5% each year beginning Year Two. Expense stop at $12.00. $10.42 O $11.78 O $10.93 O $11.33