When collating the tenancy schedules for an office building in Brisbane QLD, on 7 th September 2021,
Question:
When collating the tenancy schedules for an office building in Brisbane QLD, on 7th September 2021, ABC Company noticed that some vital information was missing and some leases haven’t been updated correctly. The company has commissioned you to address these issues by completing and answering the questions listed after that.
Occupied Tenancies | NLA | Lease Term | Option | Gross Rent | Other income (Car Parking) | Rent Review | Outgoings | |||||||
# | Tenants | Level | Use | sq m | Start | Term | Expiry | Term | $pa | # bays | $pa | Type | Review | $psm |
1 | Just Cafe Ltd | Ground | Retail | 255 | 4-Mar-13 | 10 | 3-Mar-23 | 5 | $136,221 | 5 | $0 | Turnover | 2% | $210 |
2 | Ministry of Education | Ground & Mezz. | Office | 3,024 | 10-Apr-15 | 15 | 9-Apr-30 | 5 + 7 | $1,340,963 | 60 | $162,981 | Combi | CPI + 1.5% | $210 |
3 | Shipping Pty Ltd | Level 1 | Office | 2,715 | 10-May-17 | 10 | 9-May-27 | 5 | $1,115,865 | 40 | $110,400 | % increase | 2.00% | $210 |
4 | Stocktake Holdings | Level 2 | Office | 768 | 7-Jan-20 | 10 | 6-Jan-30 | 5 | $431,616 | 10 | $32,400 | Fixed $ | $10,000 p.a. | $210 |
5 | Mobile Apps Pty Ltd | Level 2 | Office | 1,385 | 20-Nov-20 | 8 | 19-Nov-28 | 5 + 5 | $639,208 | 30 | $87,480.0 | % increase | 2.0% | $210 |
6 | EnviroClean Org. | Level 2 | Office | 462 | 11-Apr-17 | 5 | 10-Apr-22 | 3 + 3 | $269,500 | 5 | $16,200 | % increase | 3.50% | $210 |
7 | Lawyers Ltd | Level 3 | Office | 1,936 | 5-Sep-11 | 10 | 4-Sep-21 | $831,800 | 50 | $145,800 | % increase | 2% | $210 | |
Your updated tenancy schedule must include the following.
- What is the percentage of the total area (% of NLA) occupied by each tenant? (6 marks)
- What are the expiry dates after all options for each tenant have been considered? Add an option expiry column. (6 marks)
- What is the total income ($/pa) from NLA and car parking? (4 marks)
- What is the total outgoings ($/pa) for each tenant and the building? (8 marks)
- What is the rental rate for NLA ($psm) and car parking per month ($pcpm) for each tenant? (6 marks)
- What is the gross operating income ($/pa) for this property? (3 marks)
- What is net operating income ($/pa) for this property? (3 marks)
- Given the date of valuation is 07 September 2021 and there are 365 days in a year,
- Calculate the remaining days on the initial lease. (3 marks)
- What is WALE (Income)? Show all workings for each tenant and the building. (7 marks)
- What is WALE (Area)? Show all workings for each tenant and the building. (7 marks)
- Briefly discuss their implications on future investment decision-making (max 50 words). (3 marks)
- You have determined that the capitalization rate is 6.5%. What would be the market value of the property on the date valuation? (4 marks)
Expert Answer:
What is the percentage of the total area of NLA occupied by each tenant The percentage of the total area occupied by each tenant is as follows Just Cafe Ltd 255 Ministry of Education 100 Shipping Pty ... View the full answer
