You want to purchase an office building in Brooklyn. The property contains 27,500 square feet of rentable space and is currently occupied by multiple tenants each with differing maturities on their respective leases. No lease is currently shorter than 1 year. The annual rent in the 1^st year of ownership is $42.50/sq ft. The vacancy rate is 6.5%. You expect to incur collection losses (from tenant default) on 1.5% of the square feet during your first year.

If the annual IRR for this property is 8.5%, then based on the cap rate in the previous question, what does this imply for expected NOI growth rate for this property? Write your answer in percent rounded to two decimal points, but do not include the % sign (e.g. if you get %13.57654, write 13.58)