$[$The information presented here applies to questions $8,9,10,11,12,$ and $13.]$ You are working on cash flow projections for a $38,000$ square foot office building which is occupied by two tenants, A and B$.$ The lease for tenant A$,$ who occupies $26,000$ square feet of space, is expiring in $5$ years. You expect to receive the market rent in year $6,$ $$42\mathrm{.}00/$sf$,$ whether tenant A decides to renew or vacate. If tenant B will pay $$40\mathrm{.}00/$sf to rent $12,000$ square feet of space in year $6,$ what is the building's expected potential gross income for that year?

$1,572,000$

IncorrectQuestion $9$

$0/1$ pts

Tenant A$\text{'}$s lease expires in year $5$ and you expect them to renew with probability $\mathrm{.}85.$ If they do not renew, you expect that it will take about $6$ months to find a new tenant for the space. What is the effective gross income you expect to receive in year $6?$

$1,454,100$

IncorrectQuestion $10$

$0/1$ pts

What is the expected occupancy rate in year $6?$

$89\mathrm{.}74$

IncorrectQuestion $11$

$0/1$ pts

The leases for both tenants are triple net; tenants pay property taxes, insurance, and maintenance. The owner is responsible for utilities and sewage. The expected annual cost for these services is $$3\mathrm{.}20/$sf$.$ What is the expected utility and sewage expense in year $6$ if the expenses are $25\%$ fixed?

$91,200$

IncorrectQuestion $12$

$0/1$ pts

Given no other expenses, what is NOI for year $6$ of ownership?

$1,362,900$

IncorrectQuestion $13$

$0/1$ pts

What is the price you expect to receive for the building based on an $8\%$ cap rate if you sell it in year $5?$