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Your store sales average $162,000 per month. Your triple net lease has the following monthly terms: rent is 3% of sales, insurance is $210, maintenance is $100, utilities total $425, and taxes are $90. You expect next year's sales to increase 7%, but your lease terms will remain the same. Calculate next year's ANNUAL lease payment. Round your answer to the nearest dollar.

2 Answers

0 votes

Answer: 72,302

Step-by-step explanation:

User Peterjwest
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2 votes

Answer:

=$72, 302

Step-by-step explanation:

The tenant agrees to pay all real estate taxes, building insurance, and maintenance (the three "nets") plus the normal monthly rent in a triple net lease agreement.

Rent is 3% of sales. Sales will grow by 7%.

Current sales are equivalent to 100%; increased sales will be 100% + 7% = 107%

This year's monthly sales are 162,000: next year's monthly sales will be 107% of $162,000

=107/100 x $162,000

=1.07 x $162,000

=$173,340

Monthly sales will be $173,340. Monthly rent is 3% of sales

=3/100 x $173,340

=$5,200.2

The monthly lease will be monthly rent, plus insurance plus maintenance plus, utilities total plus taxes

= $5,200.2 + $210 + $100 + $425 + $90.

=$6,025.2

monthly lease = $6,025.2

Annual lease =$6,025.2 x 12

=$72,302.40

=$72, 302

User Jasom Dotnet
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