Commercial Real Estate
Capitalization (CAP) Rate Calculator
The ratio of Net Operating Income (NOI) to sales price is referred to as the capitalization rate (cap rate). Cap rate is an at-a-glance tool to compare properties of varying square footage and Sale Price. It is just the beginning of the process of evaluating a potential property investment. Feel free to download and share this cap rate calculator excel sheet.
NOI / Sale Price = Cap Rate
Net Operating Income (NOI) Calculator
Download our Net Operating Income Calculator for an easy excel tool to determine both Pro Forma Net Operating Income (NOI) and the property’s cap rate. This gives you a simple tool to calculate the expected operating income during the first year of ownership based on the sales price and property expenses.
Pro Forma (Simple) Calculator
Working with a Pro Forma for any potential investment is a critical part of an investor’s due diligence. The Pro Forma expands on evaluating NOI and Cap Rates. Even a simple Pro Forma like the one you can download here factors in current occupancy, capital reserves, the cost of financing, rent-up costs to estimate annual return on investment. The assumptions an investor plugs in to a Pro Forma are informed by the depth and breadth of the investor’s market knowledge. How does the property compare to competing properties in the market with regards to vacancy rates, rental rates, property and area amenities and tenant demand? Is there any deferred maintenance at the property? What’s the market supply like? Are there new competing properties coming on the market? These are just some of the questions to consider when evaluating a potential investment property.
Lease Net Present Value Calculator
The Lease Net Present Value calculator totals all the present values of a lease to a single sum. This calculator is a tool to use to compare different possible lease scenarios and rates providing an at-a-glance value by which to compare proposed leases for a single property. This calculator will factor in tenant improvement allowance, architectural allowance, construction management fees, broker commissions reimbursable operating expenses (retail) and operating expense base.