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).