A 1,000 Square Foot Office Space Is Leased at $15

question 10

Multiple Choice

A 1,000 square foot office space is leased at $15.00/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 $7.05.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%,what is the effective rent/square foot?

• A) $9.38
• B) $9.50
• C) $10.22
• D) $10.46

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Definitions:

Crisis Response

The strategies and actions taken by an organization to manage and mitigate the impact of an emergency situation.

Routine Treatment

Standard procedures or methods applied consistently in similar situations or conditions, often employed in medical, technical, or administrative contexts.

Business Communications

The process of sharing information between people within and outside an organization for commercial benefit.

Rubber Stamps

Tools typically made of rubber and affixed to a wooden or plastic handle, used to imprint designs, symbols, or text onto various surfaces.