Top 10 Financial Models for Commercial Real Estate Property Analysis
September 10, 2021
|
5 min
COMMERCIAL-REAL-ESTATE

When it comes to modeling financial information, property analysis spreadsheet models help property managers and investors find out annualized returns they can generate by renting or leasing out properties. All spreadsheet models use the theory of probability and not all figures are accurate. However, a good analysis can help you make business decisions that generate up to 11% to 15% returns yearly. 

Below we cover a list of the best spreadsheets used by individuals who do dealings in the commercial real estate industry.

10 best real estate financial spreadsheet models

Commercial real estate investment models help property owners, investors, and sellers make sound decisions related to purchasing, holding, and selling. If you’re looking for spreadsheet templates that analyze every aspect of your commercial building projects, these financial models can help you out:-

Some of these are designed for projects where real estate investors decide to rent or lease their properties:-

1. Industrial Real Estate Model

The industrial real estate model features tabs dedicated to inputs such as underwriting, version revisions, summary, annual cash flows, and property data. You can use the navigation bars at the top of the spreadsheet to access different parts of the model.

This real estate investment spreadsheet is best suited for real estate owners who want to develop, sell, and eventually sell their property. Metrics such as fixed/floating rates, number of tenants, rent growth, and recovery income can be entered into the model and the data visualizations give users an idea of how long to hold properties long-term until sale.

Find it here.
2. Loan Payment Calculator

The loan payment calculator model is designed to calculate what interest one needs to pay on one’s real estate property loans and how long EMIs will last. You can also use it as a real estate investment calculator spreadsheet, if you’re planning on giving out loans on your properties to new buyers.

Find it here.
3. Rental Analysis Spreadsheet

Successful real estate investors focus on cash flow when analyzing real estate rental prices since the market is prone to rises and crashes. The rental analysis spreadsheet model lets investors make a calculated decision on how to set rental prices by entering values such as vacancy/credit loss, operating expenses, cost of owning property, rehab and updating costs, and extra fees. 

You can use this rental investment spreadsheet model to forecast annual rental increases and estimate cash flow cycles historically. 

Find it here.
4. Apartment Development Model

Use the apartment development model to analyze various land development projects, for apartment planning, and build multi-family business development models by deriving insights from data visualizations. It’s very simple, intuitive, and you can use it to expand on existing projects. 

There are cash flow analysis modules within the spreadsheet with sections for land prices, unit sales, hard & soft costs, and partnership items as well. 

Find it here.
5. Rental Property Evaluation Spreadsheet

The rental property evaluation spreadsheet will let you determine the attractiveness of your commercial real estate projects. You can use it to calculate the net income of properties you already own and forecast sale prices based on amenities.

Download it to research market trends, values, and analyze cash flows of rental properties. 

Find it here.
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6. Commercial Real Estate Valuation Spreadsheet

The commercial real estate valuation spreadsheet lets you calculate the value of your properties over 5 to 10 years. You can get it from our real estate investment spreadsheet templates free.

Find it here.
7. Single Family Home Construction Pro Forma

You can use the single family home construction pro forma for planning standalone building projects. It’s a great sample real estate pro forma spreadsheet to use when analyzing multiple home construction projects over 2 to 3 years. You will find a cash flow calculation field along with sections dedicated to summary, home descriptions, home costs, and various return metrics.

The spreadsheet is great for calculating estimates for sources and returns of multiple homes combined as well.

Find it here.
8. Debt-Service Coverage Ratio (DSCR) Calculator Spreadsheet

Debt-service coverage ratio is calculated by taking your net income and dividing it by the total debt service. Covering your annual debt interest payments is important when investing in commercial real estate. You can use this template as a financial model for real estate investments and use it to figure out your repayment capacity based on income generated from various properties you already own.

You can also get a direct free download of the spreadsheet.

Find it here.
9. Fix and Flip Deal Analyzer

If you’re planning to buy a property, fix, hold it, and resale later based on different profit-case scenarios, then this fix and flip deal analyzer model is right for you. You’ll be able to use it to figure out your rehab budget, repair timings, construction draws, and interest expenses.

There are holding costs such as paying property taxes, utilities, and permits which have to be considered when doing fix and flip deals in commercial real estate. All the data from this spreadsheet will also nicely flow into your real estate development pro forma analysis.

Find it here.
10. Rent Vs Buy Investment Calculator

Can’t decide whether to rent a property or purchase a new one? You can use the Rent vs Buy Investment Calculator to make good investment decisions in commercial real estate projects and forecast profits/losses over 30 years or longer.

It’s one of our favorite real estate development financial model excel spreadsheets since it gives a bird’s eye-view of various (and potential) investments.

Find it here.

Conclusion

If you’re thinking of making investments in the commercial real estate industry, these spreadsheets are valuable in providing guidance regarding buying or selling decisions. You can make calculated guesses and evaluate how to organize your finances based on insights derived from data visualizations. 

Some of these spreadsheets are used for renting, leasing, and financial modeling for buying and selling properties. 

Written by
Pankaj Tripathi
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Top 10 Financial Models for Commercial Real Estate Property Analysis
COMMERCIAL-REAL-ESTATE
|
June 18, 2021
|
5 min
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