Real Estate Math
A Texas commercial tenant signs a 5-year lease on 2,500 SF at $20/SF/year for Year 1, with annual escalations of 3%. What is the Year 2 annual rent?
A$50,000
B$51,500✓ Correct
C$52,000
D$53,000
Explanation
Year 1 rent = 2,500 × $20 = $50,000. Year 2 = $50,000 × 1.03 = $51,500.
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