Consider the following cash flow statement for a property fully leased to a new tenant on a NNN basis beginning in Year 1. Potential Base Rent Free Rent and Concessions Absorption and Turnover Vacancy Total Rental Revenue Expense Recoveries Total Tenant Revenue Other Revenues Recoverable Opex Non Recoverable Opex Total Opex Year 1 $750,000 $0 $0 $237,500 $150,000 $325,000 $425,000 $750,000 $350,000 $1,100,000 $0 Potential gross Revenue Vacancy and Collection Loss $0 Effective Gross Revenue $1,100,000 $1,100,000 $350,000 $50,000 $400,000 Net Operating Income $700,000 What would the Year 1 NOI be if there were 3-months of downtime before the tenant's lease began AND the tenant had received 3-months of free base rent during the year? Group of answer choices
Consider the following cash flow statement for a property fully leased to a new tenant on a NNN basis beginning in Year 1. Potential Base Rent Free Rent and Concessions Absorption and Turnover Vacancy Total Rental Revenue Expense Recoveries Total Tenant Revenue Other Revenues Recoverable Opex Non Recoverable Opex Total Opex Year 1 $750,000 $0 $0 $237,500 $150,000 $325,000 $425,000 $750,000 $350,000 $1,100,000 $0 Potential gross Revenue Vacancy and Collection Loss $0 Effective Gross Revenue $1,100,000 $1,100,000 $350,000 $50,000 $400,000 Net Operating Income $700,000 What would the Year 1 NOI be if there were 3-months of downtime before the tenant's lease began AND the tenant had received 3-months of free base rent during the year? Group of answer choices
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter7: Fixed Assets, Natural Resources, And Intangible Assets
Section: Chapter Questions
Problem 7.3.3MBA
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Question
![Consider the following cash flow statement for a property fully leased to a new tenant on a NNN basis beginning in Year
1.
Potential Base Rent
Free Rent and Concessions
Absorption and Turnover
Vacancy
Total Rental Revenue
Expense Recoveries
Total Tenant Revenue
Other Revenues
Potential gross Revenue
Vacancy and Collection Loss
Effective Gross Revenue
Recoverable Opex
Non Recoverable Opex
Total Opex
Year 1
$750,000
$0
$0
$750,000
$350,000
$1,100,000
$0
$1,100,000
$0
$1,100,000
$350,000
$50,000
$400,000
Net Operating Income
$700,000
What would the Year 1 NOI be if there were 3-months of downtime before the tenant's lease began AND the tenant had
received 3-months of free base rent during the year?
Group of answer choices
$237,500
$150,000
$325,000
$425,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fca7ca693-0af7-4ccf-a688-a8dece9c4932%2F7d02e273-6e76-4ec6-8a1a-c11f48b0f0a8%2Fks95puu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider the following cash flow statement for a property fully leased to a new tenant on a NNN basis beginning in Year
1.
Potential Base Rent
Free Rent and Concessions
Absorption and Turnover
Vacancy
Total Rental Revenue
Expense Recoveries
Total Tenant Revenue
Other Revenues
Potential gross Revenue
Vacancy and Collection Loss
Effective Gross Revenue
Recoverable Opex
Non Recoverable Opex
Total Opex
Year 1
$750,000
$0
$0
$750,000
$350,000
$1,100,000
$0
$1,100,000
$0
$1,100,000
$350,000
$50,000
$400,000
Net Operating Income
$700,000
What would the Year 1 NOI be if there were 3-months of downtime before the tenant's lease began AND the tenant had
received 3-months of free base rent during the year?
Group of answer choices
$237,500
$150,000
$325,000
$425,000
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