17. You have been asked to develop a pro forma statement of cash flow for an office plaza. The information given to you is listed below:

Property Information:

Age 8 years

Rentable Space 300,000 sq.ft.

# Stories 15

# Tenants 40

Financial Information:

Base Rent Avg. $20 per sq.ft.

Other Income/Parking $1.50 per sq.ft.

Expenses Recoverable from Tenants $3.50 per sq.ft.

Current Vacancy equals to 5% of base rents

Expenses

Mgmt./Admin./Security $695,000

Property Taxes $675,000

Insurance $430,000

General Operations/Leasing Expense $667,000

Utilities $1,159,100

Janitorial/Cleaning $489,000

Business Taxes $110,000

Other

Recurring CAPEX/Improvement Allowance $700,000

1.Find the net operating income for the office plaza based on the pro forma statement of cash flow for a base year you developed? Round to the nearest decimal place