Question $3(17$ points$)$

Construct an income proforma operating statement using the following information.

Subject: $312,000$ SF warehouse

Income:

$$ Market rent is $$7\mathrm{.}25/$SF with industrial gross terms. Industrial gross in this market means the landlord pays for taxes, insurance, common area maintenance $($CAM$),$ management, and replacement reserves.

$$ The property receives other income from leasing trailer parking spaces. They currently lease $40$ spaces for $$80$ per space per month.

Vacancy and collection loss:

$$ Market vacancy in this market is $2\mathrm{.}5\%.$ Market collection loss is $0\mathrm{.}25\%.$

Operating expenses:

$$ Insurance: $$0\mathrm{.}12/$SF

$$ Real estate taxes: $$2\mathrm{.}20/$SF

$$ CAM: $$0\mathrm{.}25/$SF

$$ Management fee: $4\%$ of EGI

$$ Replacement reserves: Based on a sinking fund factor for $$3\mathrm{.}50/$SF for $4$ years in an interest$-$bearing account with an annual interest rate of $3\mathrm{.}00\%($annual compounding$).$

Show the following, rounded to the nearest dollar.

$$ Annual rental income, shown in whole dollars

$$ Annual other income, shown in whole dollars

$$ PGI, shown in whole dollars

$$ PGI, shown in $$/$SF of building

$$ Vacancy & collection loss, shown in whole dollars

$$ EGI, shown in whole dollars

$$ EGI, shown in $$/$SF of building

$$ Individual operating expenses, shown in whole dollars $(5$ individual line items$)$

$$ Total operating expenses, shown in whole dollars

$$ Total operating expenses, shown in $$/$SF of building

$$ OER, shown as a percentage

$$ NOI, shown in whole dollars

$$ NOI, shown in $$/$SF of building

Question $3(17$ points$)$

Construct an income proforma operating statement using the following information.

Subject: $312,000$ SF warehouse

Income:

$-$ Market rent is $\backslash (\backslash$$ $7\mathrm{.}25/\backslash$mathrm$\{$SF$\}\backslash )$ with industrial gross terms. Industrial gross in this market means the landlord pays for taxes, insurance, common area maintenance $($CAM$),$ management, and replacement reserves.

$-$ The property receives other income from leasing trailer parking spaces. They currently lease $40$ spaces for $\backslash (\backslash$$ $80\backslash )$ per space per month.

Vacancy and collection loss:

$-$ Market vacancy in this market is $\backslash (2\mathrm{.}5\backslash \%\backslash ).$ Market collection loss is $\backslash (0\mathrm{.}25\backslash \%\backslash ).$

Operating expenses:

$-$ Insurance: $\backslash (\backslash$$ $0\mathrm{.}12/\backslash$mathrm$\{$SF$\}\backslash )$

$-$ Real estate taxes: $\backslash (\backslash$$ $2\mathrm{.}20/\backslash$mathrm$\{$SF$\}\backslash )$

$-$ CAM: $\backslash (\backslash$$ $0\mathrm{.}25/\backslash$mathrm$\{$SF$\}\backslash )$

$-$ Management fee: $\backslash (4\backslash \%\backslash )$ of EGI

$-$ Replacement reserves: Based on a sinking fund factor for $\backslash (\backslash$$ $3\mathrm{.}50/\backslash$mathrm$\{$SF$\}\backslash )$ for $4$ years in an interestbearing account with an annual interest rate of $\backslash (3\mathrm{.}00\backslash \%\backslash )($annual compounding$).$

Show the following, rounded to the nearest dollar.

$-$ Annual rental income, shown in whole dollars

$-$ Annual other income, shown in whole dollars

$-$ PGI, shown in whole dollars

$-$ PGI, shown in $\backslash (\backslash$$ $/\backslash$mathrm$\{$SF$\}\backslash )$ of building

$-$ Vacancy $\backslash$& collection loss, shown in whole dollars

$-$ EGI, shown in whole dollars

$-$ EGI, shown in $\backslash$$$/$SF of building

$-$ Individual operating expenses, shown in whole dollars $(5$ individual line items$)$

$-$ Total operating expenses, shown in whole dollars

$-$ Total operating expenses, shown in $\backslash (\backslash$$ $/\backslash$mathrm$\{$SF$\}\backslash )$ of building

$-$ OER, shown as a percentage

$-$ NOI, shown in whole dollars

$-$ NOI $,$ shown in $\backslash (\backslash$$ $/\backslash$mathrm$\{$SF$\}\backslash )$ of building

Your answer: