Rent is $39/sq ft and increases by $2/sq ft each year thereafter. Operating expenses are $20/sq ft, increasing by $1/year. Question: Rent is $39/sq ft and increases by CPI index 3% each year thereafter. Operating expenses are $20/sq ft, increasing by $1/year. What is the effective rent?
Rent is $39/sq ft and increases by $2/sq ft each year thereafter. Operating expenses are $20/sq ft, increasing by $1/year. Question: Rent is $39/sq ft and increases by CPI index 3% each year thereafter. Operating expenses are $20/sq ft, increasing by $1/year. What is the effective rent?
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter29: Interest, Rent, And Profit
Section29.2: Rent
Problem 1ST
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Rent is $39/sq ft and increases by $2/sq ft each year thereafter. Operating expenses are $20/sq ft, increasing by $1/year.
Question:
Rent is $39/sq ft and increases by
![Year
Gross Lease -
Step Up Rents
Gross rent
Less: Operating
Expenses
Add: Recoveries
Net rent
Average net rent
Present value
Effective net rent
O
21.00
78.89
20.81
1
39.00
20.00
19.00
2
41.00
21.00
20.00
3
43.00
22.00
21.00
4
45.00
23.00
22.00
5
47.00
24.00
23.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F756b06b1-d0bf-44c1-8a99-0547720be115%2Faf6982ea-219b-4f0e-ad73-6abbe7ff796e%2Fnbh2t9d_processed.png&w=3840&q=75)
Transcribed Image Text:Year
Gross Lease -
Step Up Rents
Gross rent
Less: Operating
Expenses
Add: Recoveries
Net rent
Average net rent
Present value
Effective net rent
O
21.00
78.89
20.81
1
39.00
20.00
19.00
2
41.00
21.00
20.00
3
43.00
22.00
21.00
4
45.00
23.00
22.00
5
47.00
24.00
23.00
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