In this Intigament you are to develop a mals-year cul aforma projection for an office building with he long-term leases, wing in Excel spreadsheet (you will doplease vom to this morning in Part D osing Argon softener). The office bakding in Rentlog Plaza, which has 30,000 sat sentable square feet divided into two office waiter. Swine 100 is 20,060 SF and is based out under a 5- pear beane signed 2 years app (3 more years lets on the least, at $15.00/58 (per year. (Joppose it is the end of 2000, no the lease expires in 3 year at the end of 2003) The other oflies, Suite 200, is 10,000 SF and is emily racine In the land where Benflag Plots is Joeused, the past few years bare seen the ofice market soften goonly doe to raceis supply of overly-built space. As a rerole, seats have fallen. The commonly typical snatal rate in the market for buildings Nice Reading Pars is $1400/ 5F on -year bain, with concessions amposting to one month fore seat up front for each year of lease soom je.g, a 5-gear lease would get the Best 5 moshe most free) In there toodoses, you expect Some 200 and sit lease up for a year Ge, expected seropanty after 12 mood, in the beginning of 2002, in a 3 gear lasse running through 2004, and will ingaine $10, SF Tenant Importement ("Tenant Fasting) panditacts by the landood it that time. With titul no wer office building development on the horizon, it is thely that the perient modest growth in office demand will being the rental market back into equilibrium within, But, J year, so that by 2003 we will be back into something like equilibrium. In these nowmutant, it is reasonable to forecast so growth in (nominal rental sites in the market for the seat two years (2000-2002) followed by west porush "take" of ber's way, 20%% in 2060, with then so farther grouch is soon for the seat few years begood out time Te would who expect the sent concesites (e g. the five sent up front) to Sappear from typical market deal by 2003. Suppose it is reasonable to abrams that when the line on Suite 100 empires, there is only a 50%% chance the existing tenant will renew, If they do not renew, there wil be & months verancy is the space, and it will require $10 00/58 is tenant imp (TT, paid for by the landlord (plus a $%% commission to a beating bering to sheis s sew insist On the other hand, if the current want does meser (20%% probably), it will only seguine $3.00/SF in TE plus a 3%% brokerage commission. The brokerage comm by the landlord, up front at the time the lease is tipped, based on the entire jundiscounted) cumaleties cresson of the being, heis fine sent conceitites. For sample s 30% comission on a 10-you, $10.00/SF base, would be $3.00/SF if there were no concentites, of $4.50 SF if there was 1 -year foot rest) The type of house that is common in the market in which Rowing Para competes is what is known as a "gross" of "full service" heare, with an "expense mop". This means but the landlord pops the backding speaking myosin, europe out de beeast most joy their jer rate share of ant expenses over and above a "wop" amount specified in the brain. The "shop" amount is typically defined at of near the annual operating rapenter (per SP) which the building was experiencing as of the time when the lease was signed. The expense stop on the ating lease in Same 160 is $4 00/58. The twoan operating expenses of the building (projected for 2001) would be $481/5F if the building were for corpped d your However, the building is expected to be 33%% Thtant during the yeas, which will keep operating expenses down a bit is fret, bits of the operating expenses and "vanable", that is dandy proportional to occupancy, while the remaining sits are "fats" Codependent of