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Assignment help 1089

They are selling the building and want to go to a Net rental.

They are also willing to extend the lease for another 5 years with a 2% increase per year but it’s a Net rental basis and provide 4 months of free rent under Net.

So the question based upon the info in the letter is would it be beneficial to go to Net rental and extend the lease another 5 years under Net rental?

You have the option of keeping the Gross rental agreement for 5 years and at the end renegotiate another rental agreement (Option 1) OR go with NET rental now and extend that for 5 years (Option 2).

Which option would you choose?


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