Your client owns a 4-unit industrial building with the following leases: Unit 1 Unit 2 Unit 3 Unit 4 Square feet 10,000 15,000 15,000 10,000 $10 $12 $6 $8 Yearly base rent per foot Lease type Gross Gross Triple Net Double Net Common areas are 8,000 square feet. No lease expires within the next three years and rents are comparable to the market. The operating expenses for the building are: Property taxes $70,000 Insurance $15,000 Maintenance $10,000 Security $3,000 Snow removal $ 2,000 Other $ 5,000 The owner handles the property management himself but estimates that it would cost about 2% of base rents if he hired a property management firm. Depreciation expense is $5,000. The vacancy and credit losses on average are 1% of the total base rent. The owner has a $50,000 non-amortizing mortgage on the building and pays interest of $4,000 per year. c) What is the vacancy and credit allowance included in the stabilized NOI of the building