Forum Plaza is a Class A office building with two strong credit tenants (Tenant 1 and Tenant 2). Both tenants currently pay $30/sqft/year, the market rent and market rent are expected to stay at this level in the foreseeable future. Tenant 1 occupies 15 thousand sqft, and its lease contract ends on Dec 31, 2023. Tenant 2 occupies 15 thousand sqft, and its lease contract ends on Dec 31, 2025. When a lease contract ends, the probability that the tenant renews is 40%. If the tenant does not renew the lease, that space will stay vacant for 6 months. 

What is the projected effective gross income (EGI) for the year 2026?

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