Construct an income proforma operating statement using the following information. It should show the following on a whole dollar basis: PGI (rental income and other income itemized), vacancy & collection loss, EGI, operating expenses, OER, and NOI. 64,000 SF warehouse Market rent is $9.25/SF with industrial gross terms. Industrial gross in this market means the landlord pays for taxes, insurance, and common area maintenance (CAM). Market vacancy in this market is 3.5%. Market collection loss is 0.5%. Operating expenses include: insurance: $0.10/SF Real estate taxes: $2.75/SF CAM: $0.20/SF Management fee: 3% of EGI
Construct an income proforma operating statement using the following information. It should show the following on a whole dollar basis: PGI (rental income and other income itemized), vacancy & collection loss, EGI, operating expenses, OER, and NOI.
64,000 SF warehouse
Market rent is $9.25/SF with industrial gross terms. Industrial gross in this market means the landlord pays for taxes, insurance, and common area maintenance (CAM).
Market vacancy in this market is 3.5%. Market collection loss is 0.5%.
Operating expenses include:
insurance: $0.10/SF
Real estate taxes: $2.75/SF
CAM: $0.20/SF
Management fee: 3% of EGI
Replacement reserves: Based on a sinking fund factor for $195,000 in 7 years in an interest-bearing account with a rate of 4% (annual compounding).
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