Given the following data and rent roll, project the NOI of the building for the years 2021, 2022 and 2023. Note: It is aniticipated that this lease will not be renewed. The unit will be vacant for 3 months. The new lease will have a free rent period of 3 months and a base rent (gross) of $60/sq ft

Projected inflation (CPI) 2021 1.0% 2022 2.0% 2023 3.0% Expenses for 2020 Property taxes Insurance Maintenance & operations Security Snow removal Utilities Depreciation 600,000 50,000 300,000 75,000 35,000 350,000 50,000 RENT ROLL Floor 1 Unit 1 Retail 2017-01-01 Unit number Space vocation Lease start Lease end Lease type Square footage Rent/sq ft 2026-12-31 Triple Net 23,000 2021 2022 2023 25 25 26 5% 5% Percentage factor Breakpoint 5% 520,000 500,000 510,000 Common Area 2,000 Floor 2 Unit 2 Office 2017-01-01 Unit number Space vocation Lease start Lease end Lease type Square footage Rent/sq ft 2026-12-31 Gross 14,000 2021 2022 2023 50 +CPI +CPI Unit number Space vocation Lease start Lease end Lease type Square footage Rent/sq ft Unit 3 Office 2017-06-01 2027-06-01 Triple Net 10,000 2021 2022 2023 2022 21 21 22 Common Area 1,000 Floor 3 Unit 4 Office 2015-01-01 Unit number Space vocation Lease start Lease end Lease type Square footage Rent/sq ft 2022-12-31 Gross 25,000 2021 2022 2023 50 50 NOTE 1 TOTAL LEASABLE TOTAL COMMON TOTAL BUILDING 72,000 3,000 75,000 Projected inflation (CPI) 2021 1.0% 2022 2.0% 2023 3.0% Expenses for 2020 Property taxes Insurance Maintenance & operations Security Snow removal Utilities Depreciation 600,000 50,000 300,000 75,000 35,000 350,000 50,000 RENT ROLL Floor 1 Unit 1 Retail 2017-01-01 Unit number Space vocation Lease start Lease end Lease type Square footage Rent/sq ft 2026-12-31 Triple Net 23,000 2021 2022 2023 25 25 26 5% 5% Percentage factor Breakpoint 5% 520,000 500,000 510,000 Common Area 2,000 Floor 2 Unit 2 Office 2017-01-01 Unit number Space vocation Lease start Lease end Lease type Square footage Rent/sq ft 2026-12-31 Gross 14,000 2021 2022 2023 50 +CPI +CPI Unit number Space vocation Lease start Lease end Lease type Square footage Rent/sq ft Unit 3 Office 2017-06-01 2027-06-01 Triple Net 10,000 2021 2022 2023 2022 21 21 22 Common Area 1,000 Floor 3 Unit 4 Office 2015-01-01 Unit number Space vocation Lease start Lease end Lease type Square footage Rent/sq ft 2022-12-31 Gross 25,000 2021 2022 2023 50 50 NOTE 1 TOTAL LEASABLE TOTAL COMMON TOTAL BUILDING 72,000 3,000 75,000

Question

Given the following data and rent roll, project the NOI of the building for the years 2021, 2022 and 2023. Note: It is aniticipated that this lease will not be renewed. The unit will be vacant for 3 months. The new lease will have a free rent period of 3 months and a base rent (gross) of $60/sq ft

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Projected inflation (CPI) 2021 1.0% 2022 2.0% 2023 3.0% Expenses for 2020 Property taxes Insurance Maintenance & operations Security Snow removal Utilities Depreciation 600,000 50,000 300,000 75,000 35,000 350,000 50,000 RENT ROLL Floor 1 Unit 1 Retail 2017-01-01 Unit number Space vocation Lease start Lease end Lease type Square footage Rent/sq ft 2026-12-31 Triple Net 23,000 2021 2022 2023 25 25 26 5% 5% Percentage factor Breakpoint 5% 520,000 500,000 510,000 Common Area 2,000 Floor 2 Unit 2 Office 2017-01-01 Unit number Space vocation Lease start Lease end Lease type Square footage Rent/sq ft 2026-12-31 Gross 14,000 2021 2022 2023 50 +CPI +CPI Unit number Space vocation Lease start Lease end Lease type Square footage Rent/sq ft Unit 3 Office 2017-06-01 2027-06-01 Triple Net 10,000 2021 2022 2023 2022 21 21 22 Common Area 1,000 Floor 3 Unit 4 Office 2015-01-01 Unit number Space vocation Lease start Lease end Lease type Square footage Rent/sq ft 2022-12-31 Gross 25,000 2021 2022 2023 50 50 NOTE 1 TOTAL LEASABLE TOTAL COMMON TOTAL BUILDING 72,000 3,000 75,000 Projected inflation (CPI) 2021 1.0% 2022 2.0% 2023 3.0% Expenses for 2020 Property taxes Insurance Maintenance & operations Security Snow removal Utilities Depreciation 600,000 50,000 300,000 75,000 35,000 350,000 50,000 RENT ROLL Floor 1 Unit 1 Retail 2017-01-01 Unit number Space vocation Lease start Lease end Lease type Square footage Rent/sq ft 2026-12-31 Triple Net 23,000 2021 2022 2023 25 25 26 5% 5% Percentage factor Breakpoint 5% 520,000 500,000 510,000 Common Area 2,000 Floor 2 Unit 2 Office 2017-01-01 Unit number Space vocation Lease start Lease end Lease type Square footage Rent/sq ft 2026-12-31 Gross 14,000 2021 2022 2023 50 +CPI +CPI Unit number Space vocation Lease start Lease end Lease type Square footage Rent/sq ft Unit 3 Office 2017-06-01 2027-06-01 Triple Net 10,000 2021 2022 2023 2022 21 21 22 Common Area 1,000 Floor 3 Unit 4 Office 2015-01-01 Unit number Space vocation Lease start Lease end Lease type Square footage Rent/sq ft 2022-12-31 Gross 25,000 2021 2022 2023 50 50 NOTE 1 TOTAL LEASABLE TOTAL COMMON TOTAL BUILDING 72,000 3,000 75,000