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A retail shopping mall consists of a total area of 3.4 million square feet, of which 1,200,000 square feet has been leased to anchor tenants that have agreed to pay $1.50 per rentable square foot in CAM charges. In-line tenants occupy 1.6 million square feet, and the remainder is the common area, which the landlord believes will require $9 per square foot to maintain and operate each year. If the retail mall’s owner would like to recover all CAM expenses from its tenants, how much will in-line tenants have to pay per square foot for the CAM charges? Include all explanation.

Financial Management, Finance

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