[The information presented here applies to questions 1 -- 3]
If the rent for a renewing tenant is $25/sf and the rent for a new tenant is $28/sf,
what is the projected PGI per square foot if the probability of the current tenant renewing their space is .75?
Projected PGI per square foot = $25 * 0.75 + $28 * 0.25 = $25.75
The building offers a total of 50,000 square feet of rentable space and this particular tenant occupies 10,000 square feet.
If the remaining space in the property is fully occupied,
what is the expected occupancy rate for the building given the market leasing assumptions,
lease renewal probability, and months vacant?
Occupancy rate = (50,000 - 10,000) / 50,000 = 80%
For the given renewal probability and an expectation that it will take 6 months to find a new tenant,
what is the vacancy adjustment per square foot for this tenant?
Vacancy adjustment per square foot = $25 * (6/12) = $12.50