Use the following information to develop a cash flow forecast for the years 2022-2026:

1. Compute the average rental rate each year for all tenants and multiply by the total rentable

area to get PGI for each year.

2. All leases are triple net leases. All tenants have a step-up clause that increases their rent

$1/sqft each year.

3. Assume that all current tenants whose leases expire during the analysis will renew at that

years expected rental rate for new tenants. This is a simplifying assumption to avoid

dealing with renewal rates, renewal probabilities, and turnover. Note that these are,

however, additional components that would be included in a real-world model.

4. Compute the average rental rate each year for all tenants and multiply by the total rentable

area to get PGI for each year. Historically, however, rents were increasing an average of 3%

per year. Market rent, however, decreased by 10% in 2021 and have stayed flat into 2022.

You can use this information to estimate the starting rental rates for each of the current

tenants.

5. The current average rental rate for new tenants in the building is $60/sqft. This is a 10%

decrease from average rents in 2019-2020. Market rental rates are expected to increase at

rate of 2% per year during the period of the analysis.

6. The subject property currently has a vacancy rate of 12%, which is double the average

vacancy rate in the Times Square area in 2019-2020. The vacancy rate is expected to fall to

10% in 2024.

7. Operating expenses in 2021 were $30 per square foot of rentable area. Operating expenses

increased by 6% per year through the end of the 2026.

Please have your Excel spreadsheet that shows all calculations for each tenants

annual rent for years 2022-2026 as well as the pro forma cash flow statement for years 2022-

2026.

Tenant SF Occupied Lease Start Date Lease Expiration

Viacom 1,444,369 10/1/2015 10/1/2025 Syska Hennessy Group 64,788 4/30/2012 4/20/2022 SL Green Realty Corp 15,000 7/1/2016 7/1/2026 Wilk Auslander LLP 33,799 10/15/2021 10/15/2031 Junior's Restaurant 10,500 6/1/2012 6/1/2022 Electronic Arts Inc. 7,242 3/15/2013 3/15/2023 LINE Friends 4,629 12/31/2016 12/31/2026 Oakley Vault 1,815 11/1/2017 11/1/2027 Ratemyprofessor.com 1,350 7/30/2016 7/30/2026 Kiko Coametics 1,092 7/1/2017 7/1/2025 Moonman Productions 800 3/1/2015 3/1/2025 Reign Entertainment Company 600 7/1/2016 7/1/2024 Get Schooled 600 3/15/2021 3/15/2028 Astor Parking 600 7/1/2010 7/1/2024 Empire State Financial 500 4/1/2011 4/1/2022 Media Glow Digital 500 4/1/2015 4/1/2025 Blk Friars LLC 400 2/28/2018 2/28/2028 Fidequity 400 2/28/2020 2/28/2030 Sea Gate Travel 400 7/1/2019 7/1/2029 Minskoff Theatre 200 9/1/2020 9/1/2035 Bittylab LLC 400 12/31/2017 12/31/2023 Emerge212 Boutique 400 11/1/2017 11/1/2027 Icare4autism 400 8/1/2017 8/1/2027 Selden Law Group 1,000 6/1/2017 6/1/2027 Zedge 400 9/30/2018 9/30/2028 ACM Siggraph 400 9/30/2019 9/30/2028 Promax & Bda 500 9/30/2020 9/30/2030 TV Land 3,000 11/1/2014 11/1/2024 Nicktoons TV 3,000 11/1/2014 11/1/2024 Teen Nick 3,000 11/1/2014 11/1/2024 VH1 25,000 11/1/2014 11/1/2024 MTV 90,000 11/1/2014 11/1/2024 Logo 2,000 11/1/2015 11/1/2025