Business Financing - Real Estate Valuation

Real Estate Valuation


Enter cells highlighted in yellow

	Begin	In terminal year
Building space (in square feet):
Vacancy rate:
Rent/square foot:
Inflation rate for rents/expenses:
Inflation rate for real estate taxes:
Inflation rate for ground rent:
Unlevered beta:
Levered beta:
Riskfree rate:
Risk premium:

Year:	0	1	2	3	4	5	Terminal year
Building Space
Occupancy
Rent/Square foot
Rental Income
Garage Income
Reimbursement revenue
Credit Loss
Total Revenues

Expenses
Real Estate Taxes
Ground Rent
Other expenses (per sq ft)
Management fee
Total Expenses

Cash Flow and Valuation
Operating income before depreciation
Depreciation
Operating income
Taxes
Operating income after taxes
+ Depreciation
- Capital Maint. & Leasehold Improvement
Cash flow to firm
Terminal value
Present value
Cost of equity
Cost of debt
Debt ratio
Cost of capital


Equity Valuation of the Property

Debt =

Year:	0	1	2	3














Interest expenses


Cash Flow and Valuation
Net income before depreciation & taxes



Net income


Cash flow to equity





Comparable Properties

Property	Size	Occupancy rate	Price for sale	Price/Square foot	NOI/SF	Price/NOI
	56,000
	45,600
	31,000
	83,868
	87,443
	59,990
	58,000
	64,600
Average