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 2022 2023 1.0% 2.0% 3.0% Expenses for 2020 Property taxes Insurance Maintenance & operations Security Snow removal Utilities Depreciation 600,000 50,000 400,000 75,000 35,000 350,000 50,000 Retail sales for Unit 1 in 2020 2,000,000 RENT ROLL Floor 1 Unit number Space vocation Lease start Lease end Lease type Square footage Rent/sq ft Unit 1 Retail 2017-01-01 2026-12-31 Triple Net 23,000 2021 25 5% 500,000 Percentage factor Breakpoint 2022 25 5% 510,000 2023 26 5% 520,000 Common Area 2,000 Floor 2 Unit number Space vocation Lease start Lease end Lease type Square footage Rent/sq ft Unit 2 Office 2017-01-01 2026-12-31 Gross 10,000 2021 50 2022 2023 +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 14,000 2021 21 2022 21 2023 21 Common Area 1,000 Floor 3 Unit number Space vocation Lease start Lease end Lease type Square footage Rent/sq ft Unit 4 Office 2015-01-01 2022-12-31 Gross 25,000 2021 50 2022 50 2023 NOTE 1 TOTAL LEASABLE TOTAL COMMON TOTAL BUILDING 72,000 3,000 75,000 Projected inflation (CPI) 2021 2022 2023 1.0% 2.0% 3.0% Expenses for 2020 Property taxes Insurance Maintenance & operations Security Snow removal Utilities Depreciation 600,000 50,000 400,000 75,000 35,000 350,000 50,000 Retail sales for Unit 1 in 2020 2,000,000 RENT ROLL Floor 1 Unit number Space vocation Lease start Lease end Lease type Square footage Rent/sq ft Unit 1 Retail 2017-01-01 2026-12-31 Triple Net 23,000 2021 25 5% 500,000 Percentage factor Breakpoint 2022 25 5% 510,000 2023 26 5% 520,000 Common Area 2,000 Floor 2 Unit number Space vocation Lease start Lease end Lease type Square footage Rent/sq ft Unit 2 Office 2017-01-01 2026-12-31 Gross 10,000 2021 50 2022 2023 +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 14,000 2021 21 2022 21 2023 21 Common Area 1,000 Floor 3 Unit number Space vocation Lease start Lease end Lease type Square footage Rent/sq ft Unit 4 Office 2015-01-01 2022-12-31 Gross 25,000 2021 50 2022 50 2023 NOTE 1 TOTAL LEASABLE TOTAL COMMON TOTAL BUILDING 72,000 3,000 75,000
