The following are general rules for determining Cash Flow Available For Debt Service. Certain properties will warrant deviation from these rules.
Rental Income:
Based upon current rent roll annualized with vacant space calculated at market rents. (+)

Other Income:
Must be supported by historical collections.(-)

Vacancy:
Equal to the greater of the actual vacancy plus 1% credit loss, market vacancy plus 1% credit loss or 10% (-)

Management Fee:
Equal to the greater of the actual management fee of 5% (-) Operating

Expenses:
Should be supported by previous two (2) years and current year-to-date expenses. (-)

Capital Reserves:
Typically $0.20 per square foot minimum depending upon property age and condition. (-)

Leasing and Tenant Improvement Reserves:
Reserves subject to market rates applied to rollover tenants, commissions and T.I. improvements. Additional reserve deposits may be required based on anticipated rollover costs

Equals:
Net Operating Income (NOI) Cash flow available for debt service and the basis for determining value and loan amount.