You own a portfolio of real estate assets and one of your tenants has requested some additional Tenant Improvement dollars in exchange for an early renewal/extension. Details of the original portfolio pro-forma and the tenant request are below, would you recommend accomodating the tenant request? Please explain what led you to your recommendation and include any relevant financial metrics that guided your decision.

Lease Facts Rented Sq. Ft. Lease Rate per Sq. Ft. Tenant Improvements at Renewal (anticipated per Sq. Ft.) Months to Lease Termination Current Lease Tenant Proposal 10,000 10,000 1.25 1.40 2.00 15.00 18 78 Other Considerations Months to Disposition Exit Cap Rate Current Lease Tenant Proposal 12 12 7.5% 7.5%