Appraisal Project: You have been hired to perform an appraisal on the Highland Lakes Office Building. This is the forecasted information you have: Building has 6 different office suites with the following configuration and stabilized, market rent estimates: Suites 1-2, first floor, rents collected are $6,250 per month per suite. Each suite is 5,000 sq ft. Suites 3-5, second floor, rents are $3,800 per month per suite. Suite 6, third floor, rent is $12,500 per month. Annual market rent increases, 2.5% per year. Vacancy & Collection estimates at 5% per year. Parking income at 2% per year. Total operating expenses are estimated to be 38% of EGI per year. Debt service is 6% per year. Current capital expenditure estimates for a comparable building in the same area are 5% of EGI per year and are treated above the line. 1. Calculate Potential Gross Income (PGI) for the subject property 12500+ 12 = 150, sud $436,800 780 ,140012= 136,800 125000 12 = -lour 436010 4136700 2. Calculate Effective Gross Income (EGI) for the subject property 3. Calculate Net Operating Income (NOI) for subject property