You have been asked to develop a pro forma statement of cash flow for West Office Plaza. The information given to you is listed below.
Property Information:
WEST OFFICE PLAZA
Rentable Area .................................................................................... 300,000 sq. ft.

Age .................................................................................................................. 8 years
# Stories ................................................................................................................. 15
# Tenants ............................................................................................................... 40
Financial Information:
Base Rent Avg. ................................................................................... $20 per sq. ft.
Other Income/Parking/Storage ..................................................... $1.50 per sq. ft.
Expenses Recoverable from Tenants ........................................... $2.50 per sq. ft.
Current Vacancy .................................................................................................... 5%
Expenses:
Mgmt./Admin./Security/Ownership ........................................................ $695,000
Property Taxes ........................................................................................... $675,000
Insurance .................................................................................................... $430,000
General Operations/Leasing Expense/Marketing ................................. $667,000
Utilities ..................................................................................................... $1,159,100
Janitorial/Cleaning ..................................................................................... $489,000
Business Taxes .......................................................................................... $110,000
Other:
Recurring CAPEX/Improvement Allowance ........................................... $700,000

a. Develop a pro forma statement of cash flow for a base year showing net operating income (NOI) for West Office Plaza.
b. If you plan to begin work on future pro formas for West Office Plaza, list at least five major factors that you would consider.