You have been asked to develop a pro forma statement of cash flow for the coming (base) year for Summer Place Mall. The information given to you is listed below.
Property Information:
SUMMER PLACE MALL
Age of Improvement ...................................................................................... 10 years
Rentable Area (RA) ................................................................................. 400,000 sq. ft.
Common Area (CA) ................................................................................ 160,000 sq. ft.
Number of Tenants ................................................................................................... 40
Financial Information:
Avg. Base Rents ..................................................................................... $20 per sq. ft.
Overage Rents (5 tenants) ..................................... 50,000 sq. ft. @ $8.00 per sq. ft.
CAM Expenses Recoverable from Tenants ....................................  $5.00 per sq. ft.
Average Lease Term ..................................................................................... 3.5 years
Vacancy .......................................................................... Equal to 10% of total rental
                                                                                                                              revenue
Operating Expenses:
Maintenance/Repair ................................................................................. $1,200,000
Mgmt/admin./Leasing Expenses ................................................................ $230,000
Property Taxes .......................................................................................... $1,715,000
Insurance .....................................................................................................  $105,000
Other .......................................................................................................................... –
Other Information:
Recurring CAPEX/Improve Allowance ....................................................... $160,000
a. From the above data, develop a pro forma statement for a base year showing net operating income (NOI) for Summer Place.
b. If you plan to begin work on future pro formas for Summer Place, list at least five major factors that you would consider.