Real Estate Math

A Seattle commercial lease has a base rent of $35/SF/year and annual CPI escalations. If the CPI is 3.2% in year 2, what is the year 2 rent per SF?

A$35.56
B$36.12✓ Correct
C$36.50
D$36.75

Explanation

Year 2 rent = $35.00 × (1 + 0.

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