fill out the cash flow projection for the first year
No Name building Assumptions The building has 30,000 SF, divided into three (Space1, Space2, Space3) 10,000/SF blocks Current market lease rates: $10/SF increasing 1% per year. Inflation cat is 2% per year. Space1 Lease signed two years ago at fixed $10.50/SF for 5 years Has three years left in a 5-year lease Yt 4: 50% probability of lease at market rent, Yus. 5-8: fixed price at market rent of year 4 Space2 Yrs 1 to 5 years: Today lease for 5 years at fixed market rent Xcb 50% probability of lease at market rent Yrs. 7-10: use 6th year fixed market rent, no price increases Yc 11: return to market rent at 50% probability Space3 Yc 1: Currently vacant Yc 2: Expected to lease at the beginning of year 2 at fixed market rent for 5 years Y: 7:50% probability of lease at market rent. Yrs 8-11: Fixed market rent for 4 years (use 7th year market rent) Other income: Begin with 30,000 and increases 1% per year. Expense Reimbursements (already given) Management fee: 3% of EGI Capital Expenditures Include Tls, leasing commissions, general capital expenditures for common areas or structural improvements TI expenditures and leasing commissions occur whenever a new lease is signed. Ti is $5/SF growing to $5.50/SF beginning Yt6 Leasing commission is 3% of PGI Year 5: $100,000 spending for common area improvement PBTCF(Property Before Tax Cash Flow)= NOI-Cap Exp 7 PBTCF-Reversign(Property Before Tax Cash Flow-Reversion)=Caprate*11th year NOI. Cap rate=10 IRR(B46:L46) where line 46 = line Going-in and Going-out cap rates? Property purchased for $2 million Property sold for $2.282 million The Noname Building Cash Flow Projection Year: 1 2 3 4 5 6 7 8 9 10 Item: Market Rent/SF: 10 10.1 10.201 10.30301 10,40504 10.5101 10.6152 10.72135 10.82857 10.93685 11.04622 Potential Revenue: Gross Rent Space 1 (10000SF) Gross Rent Space 2 (10000SF) Gross Rent Space 3 (10000SF) Total PGI 0 Vacancy allowance: 1 Space 1 2 Space 2 3 Space 3 14 Total vacancy allowance 15 Total EGI 16 Other Income 17 Expense Reimbursements 18 Space 1 0 1833.333 2003.333 0 1650.768 964.3945 1117.739 2869.547 01822.581 328.7155 19 Space 2 0 2944,444 3114.444 1813.944 3464.712 0 153.3446 1905.153 469.2957 2291.877 0 20 Space 3 0 0 170 0 260.134 0 0 1751 808 315.9511 2138.532 644.6667 21 Total Revenue 22 Operating Expenses 23 Reimbursable expenses 24 Property Taxes 35000 35000 35000 35000 35000 36750 36750 36750 36750 36750 36750 25 insurance 5000 5000 5000 5000 5000 5250 5250 5250 5250 5250 5250 26 Utlities 16666.67 25500 26010 22109.5 27060.8 23001.68 23461.72 28717.14 24409.57 29877.31 25395.72 27 Total Reimbursable Expenses 56666.67 65500 66010 62108.5 670608 65001.68 65461.72 70717.14 66409.57 71877.31 67395.72 28 Non-reimbursable expenses: 29 Management 30 Total Operating Expenses 31 32 NOI
