Use the information provided below to calculate the year $2$ net operating income for the property described:

Property type:

Leasable space:

Average rent:

Expected annual rent growth:

Other income:

Expected annual growth in other income:

Vacancy and collection losses:

Operating expenses:

Capital expenditures:

Selling expenses:

Office Building

$250,000$ square feet

$$25$ per square foot per year

$5\%$

$$2$ per square foot per year

$3\%$

$10\%$ of potential gross income

$40\%$ of effective gross income

$3\%$ of effective gross income

$5\%$ of future selling price

Discount rate:

Going$-$in cap rate:

Going$-$out cap rate:

a$.$ $$3\mathrm{.}49$ million

b$.$ $$3\mathrm{.}63$ million

c$.$ $$3\mathrm{.}66$ million

d$.$ $$3\mathrm{.}85$ million

$10\%$

$6\%$

$6\mathrm{.}25\%$