Want FREE Templates on Strategy & Transformation? Download our FREE compilation of 50+ slides. This is an exclusive promotion being run on LinkedIn.

Real Estate IRR Sensitivity Model: Occupancy, Cap Rate, Hold   Excel template (XLSX)
$45.00

Real Estate IRR Sensitivity Model: Occupancy, Cap Rate, Hold (Excel template (XLSX)) Preview Image Real Estate IRR Sensitivity Model: Occupancy, Cap Rate, Hold (Excel template (XLSX)) Preview Image Real Estate IRR Sensitivity Model: Occupancy, Cap Rate, Hold (Excel template (XLSX)) Preview Image Real Estate IRR Sensitivity Model: Occupancy, Cap Rate, Hold (Excel template (XLSX)) Preview Image Real Estate IRR Sensitivity Model: Occupancy, Cap Rate, Hold (Excel template (XLSX)) Preview Image
Arrow   Unlock all preview images:   Login Register

Real Estate IRR Sensitivity Model: Occupancy, Cap Rate, Hold (Excel XLSX)

File Type: Excel template (XLSX)

$45.00
This template was crafted by a Financial Modeler, Accountant, & Consultant with over 10+ years of experience in developing Real Estate Underwriting tools. He has served 750+ clients, from small family offices to billion-dollar corporations.
Add to Cart
  


BUY WITH CONFIDENCE

Immediate digital download upon purchase.
Lifetime document updates included with purchase.
Fully editable & customizable XLSX document.
Trusted by over 10,000+ organizations.

BENEFITS OF DOCUMENT

  1. Sensitivity Analysis
  2. Real Estate Underwriting
  3. Occupancy Analysis

DESCRIPTION

This product (Real Estate IRR Sensitivity Model: Occupancy, Cap Rate, Hold) is an Excel template (XLSX), which you can download immediately upon purchase.

In my opinion, the best metric to analyze a real estate acquisition or development opportunity is IRR (internal rate of return). It is the more advanced form of cash-on-cash return (CoC). Even though CoC is an easier metric to understand, it doesn't tell you as much about the investment opportunity as IRR. They both look at total cash flows, but IRR takes the time value of money into account.

So, this is a fairly basic real estate model in terms of the revenue and expense assumptions as well as the escalation therein. You've also got some inputs for acquisition costs / purchase price, financing assumptions, vacancy rate, and other ancillary income.

The pro forma will auto-populate monthly and annual summaries for up to 20 years and fully adjusts as the inputs change. Sensitivity tables are so useful because it allows one to see final metric outputs without having to rebuild the entire model and adjust certain variables. Excel's what-if analysis feature will provide all the back-end calculations that the model is doing and show output values based on certain assumptions being changed. I find this to be the top-end level for real estate analysis and underwriting. This has become especially true with the trove of people leaving offices and occupancy being a real concern.

The really cool feature of this template is the three sensitivity tables. They produce a range of IRRs based on sensitizing occupancy rates (meaning you can see how the IRR changes for the project if occupancy is x,y,z. I added a few other inputs to sensitize, being hold period and exit cap rate. That means you can see 100 different IRRs of the project based on all those inputs being a range of 10 values.

The model also displays total annual values that go down to net operating income and cash flow.

Got a question about the product? Email us at support@flevy.com or ask the author directly by using the "Ask the Author a Question" form. If you cannot view the preview above this document description, go here to view the large preview instead.

Source: Best Practices in Integrated Financial Model, Real Estate Excel: Real Estate IRR Sensitivity Model: Occupancy, Cap Rate, Hold Excel (XLSX) Spreadsheet, Jason Varner | SmartHelping


$45.00
This template was crafted by a Financial Modeler, Accountant, & Consultant with over 10+ years of experience in developing Real Estate Underwriting tools. He has served 750+ clients, from small family offices to billion-dollar corporations.
Add to Cart
  

OVERVIEW

File Type: Excel xlsx (XLSX)
File Size: 66.5 KB


ABOUT THE AUTHOR

Author: Jason Varner | SmartHelping
Additional documents from author: 155

I graduated in 2011 with a Bachelors degree in Accounting. From there, I worked at a few small businesses doing financial reporting and some bookkeeping. After a few years of that, I started doing freelance financial consulting work on Elance and Upwork.

After over 400 jobs completed with a 100% success rate, I now run my own modeling/consulting practice and continue to build new financial models every few weeks. [read more]

Ask the Author a Question

Must be logged in

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.




Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab




Read Customer Testimonials





Customers Also Like These Documents

Related Management Topics


Integrated Financial Model Real Estate Private Equity Airbnb

Download our FREE Strategy & Transformation Framework Templates

Download our free compilation of 50+ Strategy & Transformation slides and templates. Frameworks include McKinsey 7-S Strategy Model, Balanced Scorecard, Disruptive Innovation, BCG Experience Curve, and many more.