[The information presented here applies to questions 11 and 12.] The lease for a tenant occupying 18,000 square feet is expiring next year and you're not sure if they plan to renew or not. If they renew, you will offer them $12/sf for tenant improvements. If the tenant leaves, you expect that you will have to offer a new tenant $20/sf. If you estimate the likelihood of your tenant's renewal to be 90%, what is the expected TI expense? Question 12 You expect to receive market rent of $35/sf for the space next year, regardless of whether your existing tenant renews or not. The brokerage fee for a new tenant is 20% of the first year's rent and 10% for a renewing tenant. What is the expected brokerage fee?
Question 11
[The information presented here applies to questions 11 and 12.] The lease for a tenant occupying 18,000 square feet is expiring next year and you're not sure if they plan to renew or not. If they renew, you will offer them $12/sf for tenant improvements. If the tenant leaves, you expect that you will have to offer a new tenant $20/sf. If you estimate the likelihood of your tenant's renewal to be 90%, what is the expected TI expense?
Question 12
You expect to receive market rent of $35/sf for the space next year, regardless of whether your existing tenant renews or not. The brokerage fee for a new tenant is 20% of the first year's rent and 10% for a renewing tenant. What is the expected brokerage fee?
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