Commercial Real Estate Financial Model
Originally published: 25/11/2016 10:59
Publication number: ELQ-56438-1
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Commercial Real Estate Financial Model

Compute a Commercial Real Estate Valuation and Financial Feasibility of your Investment Project - excel model

The purpose of this spreadsheet model is twofold:

1) to estimate the valuation of commercial property and

2) to determine the financial feasibility of an investment in the subject property for a 10 year holding period.

The uncertainty in this model lies in the many economic factors to be input as assumptions by the user.

The most important assumptions in this analysis are the Net Operating Income assumptions (Annual Gross Rent, Vacancy and Collection Loss Factor, and Operating Expenses) and the Cap Rate at Purchase. Special attention should be given to these assumptions.


1.) Conduct comparables analysis of similar properties to estimate the cap rate at purchase.
2.) Define all assumption distributions to reflect current and local market conditions.
3.) Run simulation.
4.) Analyze results.

- Questor Consulting LLC - Will Ferrigno - Better Analysis. Better Decisions.

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1 Excel Model

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Discussion feed for Commercial Real Estate Financial Model

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  • Doug S
    I did a model for $2mm deal with $600K down and 10 year hold. My Pro - Forma Cash flow stmt show's the Debt Service for the 1st year as a Debit and as a credit for the other years? Is this intended? Thanks!
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    • Yann Iffer
      Interesting model! I would just avoid the division per 100 and multiplication per 100 in the Property Valuation formula (C24)
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      • frankiir
        I dont see the download link
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      • Bruno Anello
        Nice model
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        4.7 / 5 (95 votes)

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