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(Solved): 58.Assume 5 year lease, CPI is 2%, Discount rate is 6%: Lease 3:  Gross lease with step:  ...



58.Assume 5 year lease, CPI is 2%, Discount rate is 6%:

Lease 3:  Gross lease with step:  

   Rent $40 psf  with one $8 step in Y3

   Owner pays all Opex

   Expenses $18 psf in Y1 and increase by $1 psf each year

 

What is the average net rent psf ?

What is the effective net rent psf ?

What is the present value of the net rent psf ?



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To calculate the average net rent per square foot (psf) for the lease, you need to subtract the expenses from the rent. In this case, the rent is $40
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