Hi Guys,

I was hoping  someone could help me with writing  my formula  for rental growths.

I have a Y1 price per sqft. with Y1, Y2, Y3 growth rates alongside varying occupancy rates.

I am trying to project out monthly cashflows  but have now confused myself on how to proceed...

I was doing   =SUM(Rent  Psf    * Occupancy/12)*  (1+r)^(Y-1)

But there are   a few different ways to do this - which is correct....

- (1+r)^(M-1)

-(1+r)^(1/12)

I want to know what is best to use for monthly growing - or at the start of each year growth  - which I think is incorporated here somewhere.

*Note I have a vlookup for the actual rate since it varies depending on year but for simplicity have left this out.

Y = Year

M = Month

I cannot take last month's revenue since it was dependent on occupancy which moves (i.e. it is not stabilised)

Region

#### Real Estate Modeling Course

• Real-life RE Modeling Tests from actual Interviews
• Various asset classes including multi-family, commercial and more
• Huge discount - until more tests and cases added