1000 square foot office space is leased at 100square foot

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1,000 square foot office space is leased at $100/square foot during the first year with $2.00 step-up provisions each of the following years. The lease is gross with an expense stop set at $6.65/square foot, and yearly expenses/square foot are as follows: $6.00, $6.65, and $7.00. The lease provides for two months of free rent at the end of the lease term. If the lease term is three years and the discount rate is 10.5%, what is the effective rent/square foot?

Reference no: EM13387410

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