Commercial Property Valuations (Analyse and Compare 20 Valuations simultaneously) with NPV, IRR and MIRR
Originally published: 16/01/2023 09:40
Last version published: 03/03/2023 16:43
Publication number: ELQ-62842-2
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Commercial Property Valuations (Analyse and Compare 20 Valuations simultaneously) with NPV, IRR and MIRR

This Commercial Real estate Valuation Model will allow you to compare up to 20 valuations simultaneously using automated NPV, IRR, and MIRR.

Description
This Commercial Real Estate (Multi) Valuation Model will help your valuation and comparisons of opportunities in the quickest of timeframes. Only 9 x Input fields can generate NPV, IRR, and MIRR under any gearing (loan) circumstance over a period of 5, 7, 10, 12, 15, and 20-year periods. This model does not produce Financial Statements with GT etc, as with our Acquisition Models, however, you will be able to quickly assess and measure opportunities against one another on a similar basis. The Model automatically creates annualized cash flows and loan amortizations as per the various time periods mentioned above. You are therefore able to assess the financial returns and effects quickly and easily. The exit values and loan amortization are brought in automatically and you are also able to measure and compare the Investment returns with zero gearing up to 100% gearing. In less than a minute for each commercial property! This method and model are the most widely used evaluation techniques used in the industry. The input fields are as follows: Gross Monthly Lease Income, Monthly Fixed Expenditure, Maintenance Provision, Vacancy Provision, Expected or Market-Related Cap Rate, Lease Escalations pa, Growth Escalation %, Amount or % of Value gearing, and Funders expected rates (%). This model will allow you to quickly identify where your best loan period might fit in terms of cash flow and the amount of gearing requirements. The Model automatically provides you with cash flows after gearing at the intervals specified above, so you will not have to go back and play around with terms and rates. All fields can be adjusted in terms of their unique escalations and vacancy factors. the Model will automatically produce a ranking system in terms of the IRR, MIRR, and NPV results. The dashboard is easy to follow and also provides you with the relationship between Cap Rates, IRR, and Lease Escalation percentages. We suggest that you place particular emphasis on the MIRR for use of these valuations because, unlike the IRR, the MIRR formulae we cap at the same rate as your funders rate on for positive cash flows. It is not always possible to achieve the same IRR rate throughout the investment cycle, but in terms of MIRR, it is possible to invest surplus cash into your own debt.

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This model will allow you to evaluate a commercial property in less than 1 minute with NPV, IRR, MIRR, Exit values and Cash flow.

Fast evaluation of commercial property with the facility to quickly compare up to 20 opportunities simultaneously


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