4-Scenario Real Estate Sale-Leaseback Analysis Model (Excel XLSX)

VIDEO DEMO

BENEFITS OF DOCUMENT

1. It streamlines the comparison of multiple real estate scenarios--buy, finance, lease, and sale-leaseback--so you can quickly identify which option delivers the best financial outcome.
2. It provides in-depth tax modeling, including NOL carryforwards and depreciation recapture, ensuring you accurately capture the true after-tax cash flow and profitability of each scenario.
3. It features easy-to-use inputs and automated calculations (DCF, NPV, IRR), saving you time while enhancing accuracy and clarity in your real estate decision-making process.

DESCRIPTION

This product (4-Scenario Real Estate Sale-Leaseback Analysis Model) is an Excel template (XLSX), which you can download immediately upon purchase.

Key Template Features

•  20-Year Modeling: Allows annual period analysis for up to 20 years, ensuring a thorough long-term financial evaluation.

•  Four Distinct Scenarios: Covers tenant buy-and-finance, tenant sale-leaseback, landlord sale-leaseback, and landlord third-party-tenant options.

•  Detailed Assumption Inputs: Includes original cost basis, appreciation, rent and lease values with escalations, debt structures, tax rates, operating expenses, and more.

•  Flexible Tenant Sale-Leaseback Start: Offers two starting-point options—sell immediately at period zero or sell an already owned building.

•  Robust Output Analysis: Provides discounted cash flow (DCF), net present value (NPV), and internal rate of return (IRR) metrics to quickly compare profitability.

•  Reinvestment Scenarios: Lets tenants optionally reinvest net cash proceeds from a sale scenario to see alternative returns.

•  Tax-Efficient Modeling: Tracks net operating losses (NOLs) with a waterfall logic and applies remaining amounts to depreciation recapture at exit.

•  Multiple Cost Segregation Slots: Up to three slots for accurately forecasting depreciation across different asset classes.

•  Side-by-Side Comparison: Shows how owning vs. leasing can impact tax benefits, cash requirements, and overall returns.

•  Easy-to-Use Interface: Highlights key input cells and presents annual cash flow summaries, making the model accessible for both novice and experienced users.

Who Benefits & Why It's Useful

This template is particularly valuable for real estate investors, corporate finance teams, and property owners who need to evaluate the financial trade-offs between buying, selling, and leasing commercial real estate. By consolidating multiple scenarios into one model, it provides clear, side-by-side insights into tax implications, cash flow impacts, and overall investment returns. Whether you're a tenant looking to free up capital or a landlord aiming to maximize rental income, the model simplifies decision-making and ensures you have the data needed to choose the most profitable course of action.

My goal with this model was to create a quick tool with the most important variables for users to run their own feasibility analysis with.

Source: Best Practices in Real Estate Excel: 4-Scenario Real Estate Sale-Leaseback Analysis Model Excel (XLSX) Spreadsheet, Jason Varner | SmartHelping