You have been asked to develop a pro forma statement of cash flow for Betts Distribution Center, an Internet-based order fulfillment/distribution/office/warehouse property. In addition to recoverable operating expenses, the new tenant will be billed for pass throughs including insurance and property taxes, which will then be paid by the owner. The information given to you is listed below.

Property Information: BETTS DISTRIBUTION CENTER Age of Improvement 8 years old Rentable Space 206,000 square feet Single Tenant 10-year lease term, net, net Financial Information: Rent $7.00 per square feet (7-year term), flat Recoverable Expenses from Tenant $1.80 per square feet, fixed Operating Expenses $715,000 Property Taxes $50,600 Insurance $15,600 Other Cash Outlays: Allowances for: Recurring CAPEX/Improve Allowance $61,500