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You own an office building that encompasses 50,000 square feet of rentable space. You are contemplating converting 10,000 square feet of rentable space to a

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You own an office building that encompasses 50,000 square feet of rentable space. You are contemplating converting 10,000 square feet of rentable space to a shared office format. You can rent the 10,000 square feet "as is" to an existing tenant for ten years at $20 per square foot, net. Alternatively, you will need to invest $500,000 to convert the space to shared office and expect to achieve a net rent of $25 per square foot after conversion. Two questions: 1. What is the payback in years for the shared office conversion? 2. Would you make the investment to convert to shared office

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