07 / MODEL METHODOLOGY

Trace the number
back to its assumption.

Income, debt and equity

Potential rent	Area × annual rent per square foot, grown by the rent growth assumption
Collected rent	Potential rent × economic occupancy
Gross operating expenses	Area × expense per square foot, grown by expense inflation
Reimbursements	Gross expenses × recovery percentage × occupancy
NOI	Collected rent + reimbursements − gross expenses − management fee on collected rent
Current income value	Year-one NOI ÷ entry capitalization rate
Initial equity	Purchase price + closing costs + initial capital works − loan
Cash to equity	NOI − annual capital reserve − debt service
DSCR	NOI ÷ debt service; not applicable with no debt service
Break-even occupancy	(Gross expenses + reserve + debt service) ÷ (full rent after management fee + maximum expense recovery)
Exit	Next year's NOI ÷ exit cap rate, less selling costs and remaining principal
NPV	Discount annual equity cash flows and net sale proceeds at the entered annual required return, then subtract initial equity
Equity multiple	Positive cash distributions ÷ all equity contributions, including modeled negative annual cash flows and any exit deficit

Debt convention

Interest-only loans pay monthly interest with the principal repaid at sale. Amortizing loans use monthly payments and the entered amortization period, with any remaining principal repaid at sale. A zero interest rate amortizes principal evenly. Debt is based on purchase price, not appraised value.

Development convention

Hard cost = area × hard cost per square foot. Soft costs are a percentage of hard costs; contingency applies to hard plus soft costs. Total budget adds land, finance and lease-up allowances. Stabilized yield = year-one NOI ÷ total budget. Implied value = stabilized NOI ÷ development cap rate.

What the model leaves out

No tax, currency conversion, loan origination fees, earlier debt maturities, tenant-by-tenant expiries, rent-free schedules, sale timing within a year or performance fees. Growth and occupancy remain constant across annual projections. This is not a valuation opinion or investment recommendation. Negative NOI produces no income-capitalization value rather than an artificial negative property value.

Persistence & exports

Use Save scenario to store lab, development and stress inputs in this browser. The checklist saves automatically. Export appraisal downloads inputs, annual results, stress outputs and checklist status in JSON; print creates a readable appraisal through your browser. Scenario models are browser-local; the dedicated Save to workspace action separately stores evidence checklist progress in your private workspace.

Rwannie adaptation: scenario drafts are retained in this browser tab across suite pages; Save scenario and Load scenario use this browser’s local storage. The evidence checklist can additionally be saved to your private workspace using its dedicated action. JSON exports contain inputs, annual outputs, stress, development and checklist status. No JSON import or automatic workspace model transfer is provided.

Warehousing & Logistics

Model methodology

Trace the number
back to its assumption.

Income, debt and equity

Debt convention

Development convention

What the model leaves out

Persistence & exports

Warehousing & Logistics

Trace the numberback to its assumption.

Income, debt and equity

Debt convention

Development convention

What the model leaves out

Persistence & exports

Trace the number
back to its assumption.