A property owner is evaluating the following alternatives for leasing space in his office building for the next five years: Net lease with CPI adjustments. The rent will be $17 per square foot the first year. After the first year, the rent will be increased by the amount of any increase in the CPI. The CPI is expected to increase 6 percent per year. Calculate the effective rent to the owner (after expenses) for the lease using a 11 percent discount rate. (Click to select) (Click to select) $17.53 $23.38 $19.48 $21.43
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- A property owner is evaluating the following alternatives for leasing space in his office building for the next five years: Net lease with CPI adjustments. The rent will be $16 per square foot the first year. After the first year, the rent will be increased by the amount of any increase in the CPI. The CPI is expected to increase 7 percent per year. Calculate the effective rent to the owner (after expenses) for the lease using a 10 percent discount rate.A property owner is evaluating the following alternatives for leasing space in his office building for the next five years: Net lease with CPI adjustments. The rent will be $16 per square foot the first year. After the first year, the rent will be increased by the amount of any increase in the CPI. The CPI is expected to increase 4 percent per year. Calculate the effective rent to the owner (after expenses) for the lease using a 10 percent discount rate A. $21.48 B. $17.90 C. $16.11 D. $19.69A property owner is evaluating the following alternatives for leasing space in his office building for the next five years: Gross lease. Rent will be $32 per square foot each year with the lessor responsible for payment of all operating expenses. Expenses are estimated to be $9 during the first year and increase by $1 per year thereafter. Calculate the effective rent to the owner (after expenses) for the lease using a 10 percent discount rate. Give typing answer with explanation and conclusion
- In order to induce a tenant to move into your shopping center, you must pay a $1.1 million tenant improvement allowance to fit out their space. The tenant agrees to lease 18,000 square feet of space at $45 per square foot. Lease term is ten years. Rate of Return is 10% What is the effective rent?Suppose you are a property owner and you are collecting rent for an apartment. The tenant has signed a one-year lease with $600 a month rent, payable in advance. Find the present value of the lease contract if the discount rate is 12% per year.You have a prospective lessee for your office property and have the following options (assume a 7-year window and 2% discount rate). Which one will provide you with the highest effective rent? a. Option A: Rent is $98 per rentable square foot with the lessor paying operating expenses up to $40, lessee responsible for remainder. Operating expenses are $39 in first year and increase by $3 each year b. Option B: Rent is $90 per rentable square foot and will increase by $3 each year. Operating expenses are $40 during the first year and will increase by $1 every year. c. Option C: Rent is $91 per rentable square foot per year and will increase by $2.50 each year. Operating expenses are $45 for the first year and will increase by $3 every year, with lessor covering up to $48.
- You are a landlord and want to figure out the value of a potential lease. The lease is for 15,000 square feet with a term of 5 years at a rate of $18 per square foot per year. All expenses are paid by the tenant. In order to sign this lease you will need to pay $75,000 upfront in tenant improvements and another $50,000 in leasing commissions. What is the value of the lease per SQ FT per year assuming a 6% discount rate? Group of answer choices $14.50 $15.02 $16.13 $16.31 Please answer fast I give you upvote.Find the present value of the following annuities. Assume the discounting occurs once a year A. The customer agreed to pay rent at the end of each year and the landlord charges $21,600 per year . The required rate of return of the landlord is 6.85%. The rent contract will last for 7 years Required: Find the present value of this agreement for the landlord B. A customer approached a car sales agent and makes a car lease agreement for 6 years. The cash flow [annual] is $6000. The agent charges 7.2% interest on such contract Required: How much will be the present value of such an agreement ?For each lease structure below, calculate the effective net rent to the owner (after expenses) for each lease alternative using a 10 percent discount rate. Calculate each for years 1-5. (HINT: Below each scenario, set up the net rent to be realized in each year and find the present value of the net rental income. Then calculate the equivalent level annuity with the same present value. This is the net effective rent. The net effective rent amounts to an annualized equivalent of the present value). Net lease with steps Net lease with CPI adjustments Gross Lease Gross lease with expense stop and CPI adjustment Rent will be $15 per square foot for the first year and will increase by $1.50 per square foot each year until the end of the lease. All operating expenses will be paid by the tenant. Calculate for years 1-5. The rent will be $16 per square foot for the first year. After the first year, the rent will be increased by the amount of any increase in the CPI. The CPI is expected to…
- You are leasing some furniture for your apartment. The monthly lease is for $395/month, payable at the beginning of the month. If your personal cost of capital is a 3% nominal annual rate, what is the present value of a one-year lease?what is the effective rent for a 6-year net lease with a fixed at $24/sf in which the landlord agrees to give the tenant one year free rent up front and pay for $7/sf worth of tenant improvements if the discount rate is 8%?McGee Leasing leased a car to a customer. McGee will receive $300 a month,at the end of each month, for 36 months. Use the PV function in Excel® to calculate the asnwers to the following questions1. What is the present value of the lease if the annual interest rate in the lease is 18%?2. What is the present value of the lease if the car can likely be sold for $6,000 at the end ofthree years?