Agenda - Council - 01/24/2017 - Laserfiche WebLink

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Revenue and Expenses Analysis We developed an opinion of the property's annual income and operating expenses after reviewing the operating performance of similar buildings. No historical operating statements for the subject property were reviewed. We analyzed each item of expense and developed an opinion regarding what an informed investor would consider typical. Kase Rental Revenue The subject's potential gross rent for the first forecast year is calculated by multiplying the market rental rates by the entire space. The resulting potential gross rent is $107,976. POTENTIAL GROSS Market Space Type SF Rent per SF Annual Net Rent Retail Space 8,998 $12.00 $107,976 Totals/Averages: 8,998 $12.00 $107,976 Expense Reim burserfie riL, A!r, Tenants in the subject's market are responsible for their p*, rata share of real estate taxes and operating expenses. Based on our analysis, we estimated total reimbursement revenue for year one at $64,099 , which equates to $7.12 per square foot. vacancy cf (A C011ez00fi LUSS Vacancy and collection loss is a function of the interrelationship between absorption, lease expiration, renewal probability, estimated downtime between leases, and a collection loss factor based on the relative stability and credit of the subject's tenant base. The following table summarizes the relevant vacancy data related to the subject property: VACANCY ANALYSIS Vacancy Statistics Rate Building Class and Market Current Vacancy at Subject Property 100.0% (Subject is vacant) Regional Vacancy Statistics 15.6% Office Space,Twin Cities Office Market Local Vacancy Statistics 21.7% Office Space, Northwest Submarket Regional Vacancy Statistics 8.5% Neighborhood Centers,Twin Cities Market We also present the following table from the NorthMarq Compass report that shows vacancy and absorption data: 98