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Question
Rent: Renewal: CPI
Dewie Cheatham and Howe (DCH), a local CPA firm, has a gross lease on 10,000 square feet of space in a suburban office building. The lease is now at the end of its first term. It has a renewal option for an additional term that calls for the new rent to be set at the old rent plus an adjustment for the change in the CPI. The CPI Index was at 106.9 at the beginning of the lease term, it is now at 125.4. The original rent was $10 per foot. What is the renewal rent?
Answer
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