You have been asked to develop a pro forma statement of cash flow for West Office Plaza. The information given to you is listed below.

Property Information:

WEST OFFICE PLAZA Rentable Area300,000square feetAge8yearsNumber of Stories15 Number of Tenants40

Financial Information:

Base Rent Average$ 20per square feetOther Income/Parking/Storage$ 1.50per square feetExpenses Recoverable from Tenants$ 2.50per square feetCurrent Vacancy5%

Expenses: Management/Administration/Security/Ownership$ 695,000Property Taxes$ 675,000Insurance$ 430,000General Operations/Leasing Expense/Marketing$ 667,000Utilities$ 1,159,100Janitorial/Cleaning$ 489,000Business Taxes$ 110,000Other: Recurring CAPEX/Improvement Allowance$ 700,000

Required:

a. Develop a pro forma statement of cash flow for a base year showing net operating income (NOI) for West Office Plaza.