Question

Assume a 4 year lease at $24.00 price per square foot per year ($2 per month) with the 1st year free rent. Assume all lease payments are beginning of the month. The required rate is 8% APR. What is the annual effective rent price per square foot assuming rent is paid monthly?

A. $12.46

B. $13.41

C. $14.34

D. $14.61

E. $15.07

Answer #1

Given the following information, calculate the effective monthly
rent payment: lease term: 10 years; concession: first year free
rent to be spread over the term of the lease; rental space: 5000
square feet; rental rate: $28.59 per square foot per year;
landlord's discount rate: 10%; rents payments received at the
beginning of each month.

Assume a 6,000 square foot property rents for $10 per square
foot per year. There are no vacancies. Expenses are 40% of gross
income. The property was bought for $400,000 with a loan-to-value
ratio of 60%. The loan was at 5% for 25 years with monthly
payments. What is the CFAT for the property in the first year
assuming the land is “fully developed?” {Remember our handy 80/20
rule, where fully-developed property has 80% of its value
attributed to the...

Assume a 6,000 square foot property rents for $10 per square
foot per year. There are no vacancies. Expenses are 40% of gross
income. The property was bought for $400,000 with a loan-to-value
ratio of 60%. The loan was at 5% for 25 years with monthly
payments. What is the CFAT for the property in the first year
assuming the land is “fully developed?” {Remember our handy 80/20
rule, where fully-developed property has 80% of its value
attributed to the...

16. Given the following information, calculate the effective
monthly rent payment: lease term: 10 years; concession: first year
free rent to be spread over the term of the lease; rental space:
5000 square feet; rental rate: $28.59 per square foot per year;
landlord's discount rate: 10%; rents payments received at the
beginning of each month.
A) $4,676
B) $5,901
C) $7,081
D) $10,122

A retail lease for 10,000 square feet of rentable space is being
negotiated for a five-year term (CAM charges are paid by the
tenant). The base rent is $25 per square foot for the coming year
with step-ups of $1 per year each year thereafter. CAM charges are
expected to be $3 /square foot for the coming year and are
forecasted to increase by 6 percent at the end of each year
thereafter. If the property owner believes that a...

Given the following information, calculate the effective monthly
rent payment: lease term: 10 years; concession: one year free rent
to be spread over the term of the lease; rental space: 5000 square
feet; rental rate: $20 per square foot per year; landlord's
discount rate: 10%.
the answer is $7,081, but I don't understand how to get it.

What is the effective rent for the following lease of 10,000
square feet utilizing the straight-line method?
Rent: $45 PSF/ year
Lease Term: 5 Years
Free Rent: 3 Months, one at the each of lease
year until burned off
Tenant Improvements (TIs): $25.00 per square
foot above what they market normally provides
Moving Cost Credit: $5,000 off First Months
Rent
[Enter Answer in the following format $XX.XX with appropriate
rounding]
Show work Please

Question 2. A metal fabrication company has a 5-year lease for
their workshop in an industrial zone. Rent is $1,000 per month and
there are 60 payments remaining. The next rent payment will be due
in one month. The landlord who owns the workshop is planning to
sell the property in a year, and he wants the tenants to pay a
higher rent so he can sell the property at a higher price in the
future. The landlord offered the...

A car may be leased for 4 years from a dealer with $330 monthly
lease payments to be paid at the beginning of each month. At the
end of the lease, the car has a residual value
of $23,000. If the dealer is charging interest at 2%
compounded monthly, what is the implied cash price of the vehicle.
Assume no down payment is m

An owner of an office building (“Lessor”) is currently
negotiating a six-year lease with a financial services company
(“Lessee”) for 15,000 rentable square feet of space.
Lessee’s offer: The financial services company would like a base
rent of $21 per square foot per year with step-ups of $2 per square
foot per year beginning the second year. Downtown Covina Office
Building owner would provide full service under the lease
terms.
Building owner’s counter-offer: The owner of the office building
believes...

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