THE NEXT THREE $(3)$ QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:

The property being appraised is a $5-$storey office building. Each floor has $8,000$ square feet of rentable space and is suitable for single occupancy. Two tenants have leases.

Floor $3$ is occupied under a new $5-$year lease and the rent is $$152,000$ per year.

Floor $4$ is occupied under a $5-$year lease with three years remaining. The current rental is $$128,000$ per year. Floors $1,2,$ and $5$ are vacant. The rent being paid for the third floor is considered current market rent for the vacant floors. However, the first floor is expected to bring a rent premium of $15\%$ because of its visibility and commercial potential. In addition, the fifth floor is expected to bring a $10\%$ premium because of its view.

There is strong demand for the space available in this building. In the next five years, rent levels are expected to increase $7\%$ on an annual compound basis as they have in the past two years. The first, second, and fifth floors will be leased for three$-$year terms $($with a fixed rent over these three years$).$ Assume that once the leases are contracted, there is no rent escalation during the lease term. Upon expiry of these leases, they roll over to market rents for another three$-$year term.

$3.$ Which of the following statements is FALSE?

$(1)$ The current market rent for Floor $1$ is $$27\mathrm{.}95$ per sq$.$ ft$.$

$(2)$ The renewal rents in Year $4$ for Floor $2$ and Floor $4$ are $$23\mathrm{.}28$ per sq$.$ ft$.$

$(3)$ The rent for Floor $3$ for each year of the $5-$year lease is $$152,000.$

$(4)$ The renewal rent in Year $4$ for Floor $5$ is $$25\mathrm{.}60$ per sq$.$ ft$.$

$4.$ Which of the following statements is FALSE?

$(1)$ The total gross potential income expected for this property for each of Year $4$ and Year $5$ is $$943,440.$

$(2).$The total gross potential income expected for this property for each of Year $1$ to Year $3$ is $$774,000.$

$(3)$ The total gross potential income expected for this property for Year $1$ is $$774,000$ and for Year $5$ is $$943,440.$

$(4)$ The total gross potential income expected for this property for each year over the next $5$ years is $$943,440.$

$5.$ Based on market rental rates, what is the total gross potential income of the property in Year $1?$

$(1)$ $$774,000$

$(2)$ $$787,500$

$(3)$ $$798,000$

$(4)$ $$790,000$