Modelled index
RWN.ENR.0178.0±35 ptsRWN.AGR.0164.0±39 ptsRWN.INF.0161.0±42 ptsRWN.PRP.0183.0±33 ptsRWN.ENR.0259.0±47 ptsRWN.ENR.0346.0±44 ptsRWN.INF.0268.0±45 ptsRWN.AGR.0257.0±42 ptsRWN.AGR.0362.0±41 ptsRWN.INF.0344.0±44 ptsRWN.INF.0453.0±45 ptsRWN.INF.0566.0±41 ptsRWN.PRP.0261.0±41 ptsRWN.PRP.0363.0±42 ptsRWN.PRP.0448.0±43 ptsRWN.CRD.0171.0±40 ptsRWN.CRD.0258.0±43 ptsRWN.CRD.0388.0±22 ptsRWN.CMD.0179.0±35 ptsRWN.CMD.0239.0±46 ptsRWN.PRP.0546.0±26 ptsRWN.PRP.0640.0±26 ptsRWN.PRP.0754.0±26 ptsRWN.PRP.0858.0±26 ptsRWN.PRP.0954.0±26 ptsRWN.PRP.1048.0±26 ptsRWN.PRP.1148.0±26 ptsRWN.PRP.1240.0±26 ptsRWN.PRP.1340.0±26 ptsRWN.PRP.1448.0±26 ptsRWN.CRD.0464.0±26 ptsRWN.CRD.0548.0±26 ptsRWN.CRD.0640.0±26 ptsRWN.CRD.0754.0±26 ptsRWN.CRD.0840.0±26 ptsRWN.CRD.0958.0±26 ptsRWN.CRD.1058.0±26 ptsRWN.CRD.1134.0±26 ptsRWN.CRD.1258.0±26 ptsRWN.CRD.1348.0±26 ptsRWN.EQU.0148.0±26 ptsRWN.EQU.0234.0±26 ptsRWN.EQU.0348.0±26 ptsRWN.EQU.0434.0±26 ptsRWN.EQU.0540.0±26 ptsRWN.EQU.0634.0±26 ptsRWN.EQU.0740.0±26 ptsRWN.EQU.0840.0±26 ptsRWN.EQU.0948.0±26 ptsRWN.EQU.1048.0±26 ptsRWN.CMD.0358.0±26 ptsRWN.CMD.0448.0±26 ptsRWN.CMD.0534.0±26 ptsRWN.CMD.0640.0±26 ptsRWN.CMD.0734.0±26 ptsRWN.CMD.0840.0±26 ptsRWN.CMD.0934.0±26 ptsRWN.CMD.1048.0±26 ptsRWN.CMD.1140.0±26 ptsRWN.CMD.1234.0±26 ptsRWN.COL.0140.0±26 ptsRWN.COL.0248.0±26 ptsRWN.COL.0348.0±26 ptsRWN.COL.0458.0±26 ptsRWN.COL.0540.0±26 ptsRWN.COL.0640.0±26 ptsRWN.COL.0758.0±26 ptsRWN.COL.0848.0±26 ptsRWN.COL.0958.0±26 ptsRWN.COL.1040.0±26 ptsRWN.DIG.0140.0±26 ptsRWN.DIG.0258.0±26 ptsRWN.DIG.0334.0±26 ptsRWN.DIG.0434.0±26 ptsRWN.DIG.0534.0±26 ptsRWN.DIG.0634.0±26 ptsRWN.DIG.0734.0±26 ptsRWN.DIG.0840.0±26 ptsRWN.DIG.0934.0±26 ptsRWN.DIG.1034.0±26 ptsRWN.CUR.0158.0±26 ptsRWN.CUR.0258.0±26 ptsRWN.CUR.0348.0±26 ptsRWN.CUR.0448.0±26 ptsRWN.CUR.0558.0±26 ptsRWN.CUR.0648.0±26 ptsRWN.CUR.0748.0±26 ptsRWN.CUR.0858.0±26 ptsRWN.CUR.0948.0±26 ptsRWN.CUR.1040.0±26 ptsRWN.ENR.0178.0±35 ptsRWN.AGR.0164.0±39 ptsRWN.INF.0161.0±42 ptsRWN.PRP.0183.0±33 ptsRWN.ENR.0259.0±47 ptsRWN.ENR.0346.0±44 ptsRWN.INF.0268.0±45 ptsRWN.AGR.0257.0±42 ptsRWN.AGR.0362.0±41 ptsRWN.INF.0344.0±44 ptsRWN.INF.0453.0±45 ptsRWN.INF.0566.0±41 ptsRWN.PRP.0261.0±41 ptsRWN.PRP.0363.0±42 ptsRWN.PRP.0448.0±43 ptsRWN.CRD.0171.0±40 ptsRWN.CRD.0258.0±43 ptsRWN.CRD.0388.0±22 ptsRWN.CMD.0179.0±35 ptsRWN.CMD.0239.0±46 ptsRWN.PRP.0546.0±26 ptsRWN.PRP.0640.0±26 ptsRWN.PRP.0754.0±26 ptsRWN.PRP.0858.0±26 ptsRWN.PRP.0954.0±26 ptsRWN.PRP.1048.0±26 ptsRWN.PRP.1148.0±26 ptsRWN.PRP.1240.0±26 ptsRWN.PRP.1340.0±26 ptsRWN.PRP.1448.0±26 ptsRWN.CRD.0464.0±26 ptsRWN.CRD.0548.0±26 ptsRWN.CRD.0640.0±26 ptsRWN.CRD.0754.0±26 ptsRWN.CRD.0840.0±26 ptsRWN.CRD.0958.0±26 ptsRWN.CRD.1058.0±26 ptsRWN.CRD.1134.0±26 ptsRWN.CRD.1258.0±26 ptsRWN.CRD.1348.0±26 ptsRWN.EQU.0148.0±26 ptsRWN.EQU.0234.0±26 ptsRWN.EQU.0348.0±26 ptsRWN.EQU.0434.0±26 ptsRWN.EQU.0540.0±26 ptsRWN.EQU.0634.0±26 ptsRWN.EQU.0740.0±26 ptsRWN.EQU.0840.0±26 ptsRWN.EQU.0948.0±26 ptsRWN.EQU.1048.0±26 ptsRWN.CMD.0358.0±26 ptsRWN.CMD.0448.0±26 ptsRWN.CMD.0534.0±26 ptsRWN.CMD.0640.0±26 ptsRWN.CMD.0734.0±26 ptsRWN.CMD.0840.0±26 ptsRWN.CMD.0934.0±26 ptsRWN.CMD.1048.0±26 ptsRWN.CMD.1140.0±26 ptsRWN.CMD.1234.0±26 ptsRWN.COL.0140.0±26 ptsRWN.COL.0248.0±26 ptsRWN.COL.0348.0±26 ptsRWN.COL.0458.0±26 ptsRWN.COL.0540.0±26 ptsRWN.COL.0640.0±26 ptsRWN.COL.0758.0±26 ptsRWN.COL.0848.0±26 ptsRWN.COL.0958.0±26 ptsRWN.COL.1040.0±26 ptsRWN.DIG.0140.0±26 ptsRWN.DIG.0258.0±26 ptsRWN.DIG.0334.0±26 ptsRWN.DIG.0434.0±26 ptsRWN.DIG.0534.0±26 ptsRWN.DIG.0634.0±26 ptsRWN.DIG.0734.0±26 ptsRWN.DIG.0840.0±26 ptsRWN.DIG.0934.0±26 ptsRWN.DIG.1034.0±26 ptsRWN.CUR.0158.0±26 ptsRWN.CUR.0258.0±26 ptsRWN.CUR.0348.0±26 ptsRWN.CUR.0448.0±26 ptsRWN.CUR.0558.0±26 ptsRWN.CUR.0648.0±26 ptsRWN.CUR.0748.0±26 ptsRWN.CUR.0858.0±26 ptsRWN.CUR.0948.0±26 ptsRWN.CUR.1040.0±26 pts
Frontiers · Commercial Real Estate · Development lab
Build cost, time and a single exit.
Staged works, contingency, debt draws and carrying costs — then one completed sale. A simplified project appraisal, not a construction budget.
ILLUSTRATIVE · USD · SQ FT · PRE-TAX
Commercial development appraisal
Model staged works, debt draws, holding costs and a single completed sale before assessing project profit.
Modelled outcome
Appraisal summary
Annualised investor IRR
30.4%
10 months to sale
Investor profit
$37,829
Margin on sale value
8.4%
Investor NPV
$16,800
15% hurdle
Project inputs
Cost and funding
| Item | Amount |
|---|---|
| Works incl. contingency | $99,000 |
| Acquisition loan | $150,000 |
| Works debt commitment | $49,500 |
| Total interest | $15,181 |
| Total project cost | $412,171 |
| Initial investor equity | $116,490 |
| Debt repaid at sale | $199,500 |
| Net sale proceeds to investor | $228,000 |
Development boundaries
Works are spent evenly over construction; the financed share is drawn in the same month. Interest is paid in cash monthly, not capitalised. There is no pre-letting, phased sale, cost inflation curve, retention or contractor default. Leasing after completion is represented only by the sale delay and the completed value you enter.
Monthly project schedule
Works, draws, interest and holding costs before the final disposal.
| Month | Works | Debt draw | Interest | Holding + admin | Debt balance | Investor CF |
|---|---|---|---|---|---|---|
| 1 | $12,375 | $6,188 | $1,302 | $900 | $156,188 | -$8,389 |
| 2 | $12,375 | $6,188 | $1,353 | $900 | $162,375 | -$8,441 |
| 3 | $12,375 | $6,188 | $1,405 | $900 | $168,563 | -$8,492 |
| 4 | $12,375 | $6,188 | $1,456 | $900 | $174,750 | -$8,544 |
| 5 | $12,375 | $6,188 | $1,508 | $900 | $180,938 | -$8,595 |
| 6 | $12,375 | $6,188 | $1,559 | $900 | $187,125 | -$8,647 |
| 7 | $12,375 | $6,188 | $1,611 | $900 | $193,313 | -$8,698 |
| 8 | $12,375 | $6,188 | $1,663 | $900 | $199,500 | -$8,750 |
| 9 | $0 | $0 | $1,663 | $900 | $199,500 | -$2,563 |
| 10 | $0 | $0 | $1,663 | $900 | $199,500 | $225,438 |
Next: put leasing and capital risks together.
Stress & sensitivity →