Real Estate Math

An Idaho commercial building has 15,000 leasable square feet. The owner wants a minimum $22/sq ft annually in base rent. The tenant is offered a 5-year lease at $20/sq ft with 3% annual escalations. After 5 years, what is the annual rent per square foot?

A$21.86
B$22.12
C$22.56
D$23.19✓ Correct

Explanation

Year 1: $20.00.

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