A property with an analysis start date of January 2021 has Market Rent for both new and renewal tenants at $20.50/SF/Year. If a tenant rolls to market and a new lease begins in September 2025, what rent would ARGUS Enterprise use for the speculative tenant? Assume Market Rent Inflation is 4% beginning in the second year of the analysis. $23.98/SF/Year $23.06/SF/Year $22.17/SF/Year $24.94/SF/Year
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A property with an analysis start date of January 2021 has Market Rent for both new and renewal tenants at $20.50/SF/Year. If a tenant rolls to market and a new lease begins in September 2025, what rent would ARGUS Enterprise use for the speculative tenant?
Assume Market Rent Inflation is 4% beginning in the second year of the analysis.
- $23.98/SF/Year
- $23.06/SF/Year
- $22.17/SF/Year
- $24.94/SF/Year
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- An asset with a market value of P1,000,000 is leased on January 1, 2019. Five annual lease payments are due each December 31 beginning December 31, 2019. The guaranteed residual value on December 31, 2023, the last day of the lease term, is P400,000. The lessor's implicit interest rate is 8%. What is the annual lease payment? A. P200,000 B. P182,456 C. P168,910 D. P120,000Lease ValuationA building owner is evaluating the following alternatives for leasing space in an office building forthe next five years. Expenses are estimated to be $9 psf for the first year and forecast to increase at$1 psf per year thereafter.Net lease with steps. Rent is $15 psf for the first year and will increase $1.50 per square foot foreach year until the end of the lease. All operating expenses are paid (reimbursed) by the tenant.Net lease with CPI adjustments. Rent is $16 psf for the first year. After year 1, the rent will beincreased by any increase in the CPI which is expected to be 3% per year. Again, all the expenses arereimbursed by the tenant.Gross lease. Rent will be $28 psf each year with the lessor responsible for paying all of the operatingexpenses.Gross lease with an expense stop and CPI adjustment. Rent will be $24 psf the first year and increaseby the full amount of the CPI (3%) after the first year with an expense stop for the landlord at $9 psf.The CPI and…CHOOSE THE CORRECT ANSWER FROM THE CHOICES An asset with a market value of P1,000,000 is leased on January 1, 2019. Five annual lease payments are due each December 31 beginning December 31, 2019. The guaranteed residual value on December 31, 2023, the last day of the lease term, is P400,000. The lessor’s implicit interest rate is 8%. What is the annual lease payment?A. P200,000 B. P182,456 C. P168,910 D. P120,000
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- A property owner is evaluating the following alternatives for leasing space in his office building for the next five years: Net lease with CPI adjustments. The rent will be $17 per square foot the first year. After the first year, the rent will be increased by the amount of any increase in the CPI. The CPI is expected to increase 6 percent per year. Calculate the effective rent to the owner (after expenses) for the lease using a 11 percent discount rate. (Click to selectiv ****** (Click to select) $17.53 $23.38 $19.48 $21.43Big Bucks leased equipment to Shannon Company on July 1, 2018. The lease payments were calculated to provide the lessor a 8% return. Eight annual lease payments of $40,0o00 are due each July 1, beginning July 1, 2018. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare the journal entries to record the lease by Shannon at July 1, 2018, and at December 31, 2018, the end of the reporting period. Consider this to be a finance lease. 2. Prepare the journal entries to record the lease by Shannon at July 1, 2018, and at December 31, 2018, the end of the reporting period. Consider this to be an operating lease. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entries to record the lease by Shannon at July 1, 2018, and at December 31, 2018, the end of the reporting period. Consider this to be a finance lease. (If no entry is required for a…A property owner is evaluating the following alternatives for leasing space in his office building for the next five years: Net lease with steps. Rent will be $15 per square foot the first year and will increase by $3.30 per square foot each year until the end of the lease. All operating expenses will be paid by the tenant. Calculate the effective rent to the owner (after expenses) for the lease using a 11 percent discount rate. ✓(Click to select) $18.82 $20.91 $23.00 $25.09
- An owner of the Atrium Tower Office Building is currently negotiating a five-year lease with ACME Consolidated Corporation for 20,000 rentable square feet of office space. ACME would like a base rent of $15 per square foot with step-ups of $1 per year beginning one year from now. ATRIUM would provide ACME a $53,000 moving allowance and $130,000 in tenant improvements (TIs). What is the effective rent (per SF) assuming a discount rate of 10%?McGee Leasing leased a car to a customer. McGee will receive $300 a month,at the end of each month, for 36 months. Use the PV function in Excel® to calculate the asnwers to the following questions1. What is the present value of the lease if the annual interest rate in the lease is 18%?2. What is the present value of the lease if the car can likely be sold for $6,000 at the end ofthree years?Organic Markets reports operating lease information in its 2016 annual report (in millions). You determine that a discount rate of 6.0% is appropriate for Organic Markets and calculate the following. What economic liability is potentially left off Organic Markets' balance sheet? Note: Round the remaining lease term to the nearest whole year, using the final lease payment provided as an estimate of annual future payments. Year 2017 2018 2019 2020 2021 Thereafter Minimum operating lease payments $650 783 836 852 854 9,728 $13,703 Select one: O a. $8,358 million O b. $13,703 million. O c. $10,183 million O d. $10,060 million.