9. 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/Improve 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.