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The owner of an office building totaling 52,000 sq. ft. has the following rent roll for 2020: Unit 2 Unit 3 Unit 4 Occupied sq. ft. Unit 1 15,000 $10 12,000 12,000 11,000 Base rent $13 $8 $9 Lease type Single Net Gross Triple Net Double Net In addition, the asset manager has provided the following line items from the property's 2020 income statement: $15,000 $11,000 $50,000 Property management: Insurance: Property taxes: Income taxes: Security: Depreciation & amortization: Cleaning & maintenance: Interest expense: Other operating expenses: $45,000 $6,000 $4,500 $9,000 $5,000 $5,000 a) If all tenants paid their rent in full, how much base rent did the owner collect on a monthly basis in 2020? Answer: b) What is the total of expense recoveries for 2020? Answer: c) If vacancy and credit losses have averaged 1% historically for this property, what is the stabilized NOI for 2021 if there are no other changes from the 2020 rent roll and income statement? Answer: d) If all tenants had agreed to sign triple net leases, what would the total expense recoveries for 2020 have been? Answer: The owner of an office building totaling 52,000 sq. ft. has the following rent roll for 2020: Unit 2 Unit 3 Unit 4 Occupied sq. ft. Unit 1 15,000 $10 12,000 12,000 11,000 Base rent $13 $8 $9 Lease type Single Net Gross Triple Net Double Net In addition, the asset manager has provided the following line items from the property's 2020 income statement: $15,000 $11,000 $50,000 Property management: Insurance: Property taxes: Income taxes: Security: Depreciation & amortization: Cleaning & maintenance: Interest expense: Other operating expenses: $45,000 $6,000 $4,500 $9,000 $5,000 $5,000 a) If all tenants paid their rent in full, how much base rent did the owner collect on a monthly basis in 2020? Answer: b) What is the total of expense recoveries for 2020? Answer: c) If vacancy and credit losses have averaged 1% historically for this property, what is the stabilized NOI for 2021 if there are no other changes from the 2020 rent roll and income statement? Answer: d) If all tenants had agreed to sign triple net leases, what would the total expense recoveries for 2020 have been

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