What is the annual effective rent

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Question - A new tenant has a 10-year lease on 5,000 sq. ft. at a rate of $18 per sq. ft. There is a year of free rent at the end of the lease term. The client's required rate of return is 10%. What is the annual effective rent per sq. ft.?

a. $15.19 per sq. ft.

b. $15.29 per sq. ft.

c. $16.10 per sq. ft.

d. $16.90 per sq. ft.

Reference no: EM133077301

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