You own a property in Newark with 28,000 leasable square feet. You lease 3,000 square feet (the ground floor) to a restaurant Famous Daves BBQ and you lease another 25,000 square feet to an office tenant Maxs Office. Because of a sweetheart deal you struck with the city, you only have one expense with the building, utilities. Utilities expenses are $1.25/ft per month when the building is fully occupied and 30% of the utilities expense is fixed.

• Famous Daves signed a 5-year lease on Jan 1, 2020 agreeing to pay $2.50/ft per month in base year rent with no increases. Famous Daves also agreed to pay 5% percentage rent above the natural breakpoint. Daves expects sales of $200,000 per month each month. Famous Daves pays pro-rata recoveries on utilities with no base stop.
• Maxs Office signed a 5-year lease on Jan 1, 2017 agreeing to pay $3.00/ft per month in base rent with no increases. On Jan 1, 2022 Maxs Office has the option to renew the lease at the previous rate of $3.00/ft per month for another 5 years. With a 70% probability, Maxs Office will not renew and you expect the space will be vacant for 8 months while you find a new tenant. The new tenant will pay the market rate rent of $3.35/ft per month. If the tenant is Maxs Office or someone new, in either case the tenant will pay pro-rata recoveries on utilities with no base stop.

1. Compute the following for only Famous Daves for the entire year of 2022:
   1. Annual base rent
   2. Annual percentage rent
2. For the entire year of 2022 determine (show work!)
   1. What is the vacancy allowance for the entire building in total?
   2. What is potential base rent for the entire building in total? Note: This includes Daves Base Rent but does not include Daves Percentage Rent.
3. For utilities, compute
   1. Monthly fixed costs for the entire building in total
   2. Monthly variable costs for the entire building in total when the building is fully leased
      1. (this is easy, dont overthink this)
4. As computed by ARGUS, what are expenses for the entire building in total for the entire year of 2022? Show work!
5. As computed by ARGUS, what are recoveries for the entire building in total for the entire year of 2022? Show work!