NOI and TV PPs

$1.$ You are a consultant to an investor considering the purchase of an office property. The property has $11,500$ square feet of rentable space. Your analysis of competitive properties suggests a $7\%$ vacancy rate is appropriate, and that a reasonable Operating Expense Ratio $($the OER$)$ for this kind of property is $35\%.$ Annual parking fees will total $$12,000,$ and the market rent is $$15$ per year per square foot. Annual mortgage payments will be $$75,000$ and depreciation expense will be $$30,000.$ Develop an estimate of Net Operating Income $($NOI$).$

$2.$ Referring to the property described in question #$1,$ develop a forecast of year $2$ NOI if rents are expected to increase by $3\%,$ vacancy will decline to $5\%,$ and the OER will remain at $35\%.$ Parking fees will increase to $$14,000.$ Annual mortgage payments will remain at $$75,000,$ while depreciation expense will decline to $$22,500.$

$3.$ An industrial property expected to produce $$325,000$ of NOI recently sold for $$4,700,000.$ NOI is expected to increase at a $3\%$ annual rate over the next decade. A six year holding period is projected. Estimate the expected terminal value.

$4.$ At the time of purchase, what was the cap rate for Meaghan$$s Manor?

$5.$ What was the cap rate for the terminal value of Meaghan$$s Manor after the six year holding period?

$6.$ NOI is considered by many to be the most important set of cash flows generated by a real estate investment. Give $4$ reasons.