Required: a. Develop a pro forma statement of cash flow for a base year showing net operating income (NOI) for West Office Plaza.
Required: a. Develop a pro forma statement of cash flow for a base year showing net operating income (NOI) for West Office Plaza.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 Area
Age
Number of Stories:
Number of Tenants
330,000 square feet
8 years
15
40
Financial Information:
Base Rent Average
Other Income/Parking/Storage
Expenses Recoverable from Tenants
Current Vacancy
Expenses:
Management/Administration/Security/Ownership
Property Taxes
Insurance.
General Operations/Leasing Expense/Marketing
Utilities
Janitorial/Cleaning
Business Taxes
Other:
Recurring CAPEX/Improvement Allowance
$ 20 per square feet
$ 3.00 per square feet
$ 4.00 per square feet
5%
$ 698,000
$ 682,500
$ 433,000
$ 674,500
$ 1,166,600
$ 496,500
$ 117,500
$ 707,500
Required:
a. Develop a pro forma statement of cash flow for a base year showing net operating income (NOI) for West Office Plaza.
WEST OFFICE PLAZA

Transcribed Image Text:Required:
a. Develop a pro forma statement of cash flow for a base year showing net operating income (NOI) for West Office Plaza.
Revenue
Add:
Other income (parking)
Recoverable expenses
Less:
Vacancy
Effective gross income
Less: Operating expenses
Business taxes
Insurance
Operating/Leasing
Management/Administration
Utilities
Property taxes
Janitorial/Cleaning
WEST OFFICE PLAZA
Total operating expenses
Cap expenses/Improvement allowance
Net operating income
0
$
0
0
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