You own a building with 55,555 leasable square feet and one tenant...

You own a building with 55,555 leasable square feet and one tenant currently leasing 40,000 square feet. Your utilities bill is currently $65,000 each year of which $20,000 is a fixed cost and the rest represents variable usage. A second tenant wants to come in and lease all the remaining space. The tenant has asked for a base stop of $1.17 per square foot. How much do you expect this second tenant to pay in recoveries for the utilities bill each year?