Adjustments to NOI: Vacancy Loss Marvin Garden’s, a 200-unit B-grade apartment complex in Scottsdale, Arizona, is currently 97 percent occupied and has rent revenue of

$2,328,000 per year. NOI for the period is $1,500,000. Next year, the property’s rents will not increase, and expenses will remain constant.

Vacancy loss will be 5 percent of gross potential rent. Estimate the gross potential rent, vacancy loss, and NOI for next year.