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The formula for calculating premises cost typically includes several components:

  1. Base Rent: The agreed-upon amount for leasing the property.
  2. Operating Expenses: Costs associated with property management, maintenance, utilities, and insurance.
  3. Taxes: Property taxes that may be applicable.

The total premises cost can be summarized as: Total Premises Cost = Base Rent + Operating Expenses + Property Taxes. Additional costs like maintenance and renovations may also be factored in depending on the lease agreement.

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5d ago

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