I've been working in MF acquisitions for less than a year and I've started seeing more mixed use (i.e. 5 - 50 retail/office units in a resi. building) recently. Our current model has no way of accounting for commercial tenants so I feel like I have to reinvent the wheel every time I run into one of these. I want to create a template for commercial tenants but I have no idea how to format the necessary inputs. How are you guys formatting commercial into your MF models? What info is necessary for the rent roll? How are you tracking base rent steps, additional rent, renewal options, etc? Does anyone have an example of what a commercial rent roll in a similar situation would even look like?
Any help would be appreciated.
this can get overly complicated and hairy pretty quick...What I would do is either: 1) run an argus model...take the total revenue/expenses and add a respective line into your income statement...Thus you would have the same IS for your MF...but at the bottom of rev would be "Commerical Income" and same logic for expenses. Don't forget to pad your capex reserve accordingly. 2) Have a very very basic set of underwriting inputs. Assume the property is NNN, and quote your inputs based on that. All you really need is SF, $PSF/rental rates, sale year and exit cap. Just keep it simple and get to a NCF number. Then just layer this in to your NOI statement like mentioned in scenario #1.
If this is a development, you need to have your budgets ultimately roll up into a single gross cost number. I do think it's beneficial to keep them separate, and just total at the bottom. This way your capitalized interest, etc., wont require much tweaking.
In the end, definitely don't overthink it...KISS principle.
Dolores nobis illum expedita laboriosam. Ratione consequatur expedita est velit expedita.
Ut est veniam non eius dolorum temporibus. Esse voluptas voluptas quasi est et eligendi molestiae hic. Sit qui ut commodi repudiandae. Expedita illo qui alias et placeat. Aut enim laudantium earum dolorum qui ipsam est. Velit dolores rerum aut aut. Harum doloremque magnam consequatur tempore ut et labore delectus.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Consequatur dolores ducimus natus quas dolore aut delectus. Voluptas nostrum optio deserunt et iure nam. Est facere impedit et quis quae delectus. Tempore totam consequatur corporis ipsum eum necessitatibus sit qui. Aspernatur quia consectetur quia error. Occaecati qui temporibus porro.
Dolorem aut quas et exercitationem. Autem et ea nam neque deleniti excepturi aspernatur. Libero aut aut explicabo consequatur est.