Fill This Form To Receive Instant Help
Fill This Form To Receive Instant Help
Homework answers / question archive / RED-437 Assignment #4 – Due Friday, 06/11/2021 @ midnight
RED-437 Assignment #4 – Due Friday, 06/11/2021 @ midnight. Grading This Assignment grade is worth 15 points. Full points will be awarded for successful attempt and completion of the assignment. Late submissions, up to 1 week beyond due date, will be accepted for partial credit only (12 points). Submitting Your Work Upload your excel workbooks under Cases and Assignments -> Assignment 4 – TURN IN HERE. Please name the file as follows: "437_A4_[student last name]_Date[xxxx.xx.xx]" This is the RED course number, underscore, A4 for Assignment #4, underscore, your last name, underscore, and date turned in (using the format YYYY.MM.DD). Percentage Rent Calculation Recall that many Class A retail leases use a concept of “percentage rent,” especially in large shopping malls or multi-tenant retail centers. In this exercise, you will compare two percentage rent lease alternatives – Option 1 using an Artificial Breakpoint, and Option 2 using a Natural Breakpoint. Revenue Forecast January February March April May June July August September October November December $100,000 $80,000 $70,000 $75,000 $95,000 $95,000 $85,000 $100,000 $110,000 $120,000 $130,000 $140,000 Percentage Rent Lease Alternatives Base Rent Premises $10/sf/yr 5,000 sf Option 1 – Artificial Breakpoint Percentage Rent 5% Breakpoint $800,000 Option 2 – Natural Breakpoint Percentage Rent 6% Breakpoint natural 1) Getting Started Start by reviewing the Video Lecture: Commercial Leasing – Pt 2 and Excel Tutorial – Percentage Rent. Next, set up your own percentage rent calculation for each lease alternative. 2) Answer the following questions in a text box inside of the excel model. 1. What are the percentage rents of each lease option? 2. Do you prefer the artificial or the natural breakpoint? Why?
Already member? Sign In
