Frontiers · Commercial Real Estate · Investment appraisal
From rent roll to investor return.
ILLUSTRATIVE · USD · SQ FT · PRE-TAX
Commercial investment appraisal
Trace lease income, recoveries, leasing costs, debt and exit value through to the investor’s modelled return.
Modelled outcome
Appraisal summary
Annualised investor IRR
-0.1%
7-year hold · includes exit · Modelled
Investor NPV
-$1,392,519
12% annual hurdle
Initial investor equity
$2,430,000
100% ownership
Year 1 investor cash
-$33,263
After leasing costs, capex and debt
Build your case
Changing sector or strategy loads a sample case and lease register.
Asset & operations
Exit & investor
Edit tenants on the Lease register and loan terms on Debt & refinancing. Inputs stay in this browser tab. Defaults are Assumed illustrations; outputs are Modelled.
Income quality
OfficeYear 1 property NOI
$331,335
6.6% on purchase price
Acquisition occupancy
86.7%
By physical area, before re-letting
Rent-weighted lease term
3.36 yrs
Current leases · no break options
Largest tenant rent share
48.3%
Current contracted base rent
Year 1 requires additional investor funding. Review tenant improvements, commissions, capital expenditure and financing cash flows.
A rent-free tenant counts as occupied. NOI excludes tenant improvements, commissions, capital spending, entity administration and debt service.
Operating income versus investor cash
Investor cash includes any refinance proceeds or top-up. Sale proceeds are shown in the exit bridge.
Exit bridge
| Measure | Amount |
|---|---|
| Forward 12-month NOI | $388,151 |
| Gross property value | $5,545,012 |
| Sale costs | -$166,350 |
| Remaining debt | -$2,731,287 |
| Investor share (100%) | $2,647,375 |
Value = forward NOI ÷ exit cap rate. No additional terminal deduction for future leasing costs; test this approximation carefully for near-term expiries.
Equity discipline
Net-flow multiple
1.00×
Net-flow contributions
$3,300,849
All cash deficits are assumed funded. Monthly receipts and costs are netted, so these contributions may understate intra-month liquidity needs.
Annual audit trail
Year-by-year income, leasing costs, debt service and investor cash, before sale.
| Year | Collected income | Property NOI | TI + commissions | Debt service | Investor net cash | Avg occupancy |
|---|---|---|---|---|---|---|
| 1 | $508,787 | $331,335 | $84,018 | $243,075 | -$33,263 | 93.3% |
| 2 | $575,865 | $391,535 | $0 | $243,075 | $109,829 | 100.0% |
| 3 | $483,124 | $296,565 | $180,558 | $243,075 | -$166,858 | 86.7% |
| 4 | $492,253 | $300,258 | $0 | $243,075 | $16,200 | 80.0% |
| 5 | $583,764 | $383,707 | $282,776 | $243,075 | -$122,823 | 100.0% |
| 6 | $533,096 | $329,083 | $146,245 | $239,234 | -$99,876 | 83.3% |
| 7 | $666,487 | $452,831 | $98,447 | $239,234 | $70,366 | 100.0% |
Next: interrogate every tenant, expiry and re-letting assumption.
Lease register →