If a commercial building measuring 55X60 ft has an annual price of $11.50 per sq. ft., what is the average rent price per year, with a 5-year lease and 6 months free?

To determine the average rent price per year for the commercial building, we first need to calculate the total area of the building in square feet. The building measures 55 feet by 60 feet, so the area is calculated by multiplying these two dimensions:

Area = 55 ft * 60 ft = 3,300 sq. ft.

Next, we need to find the annual rent for this area at $11.50 per square foot. This is done by multiplying the area by the rental rate:

Annual rent = Area * Price per sq. ft. = 3,300 sq. ft. * $11.50/sq. ft. = $37,950.

Since the lease is for 5 years, the total rent for the entire lease period without considering the free months is calculated by multiplying the annual rent by 5:

Total rent for 5 years = Annual rent * 5 = $37,950 * 5 = $189,750.

However, the lease includes 6 months of free rent. This means that the tenant is only paying for 5.5 years of the rent. To find out how much rent is actually paid over the lease term, calculate the annual rent for 5.5 years