Astor Engineering recently merged with another firm and could lease additional office space or purchase its own building. The $30,000 per year lease agreement will be a net, net, net lease, which means that the lessee (Astor) will pay the real estate taxes on the leased space, the building insurance on the leased space, and the common
area maintenance. Since these costs are about the same if Astor owned the building, they do not need to be considered in the analysis.