A commercial real estate valuation model template assists in running a professional DCF Valuation for a commercial property such as an office building, industrial site, logistics building, storage, or retail building. This real estate Excel template was developed and designed as per the needs of a professional real estate appraiser and comes in different versions: BASIC, PRO, and PREMIUM. The PREMIUM version also includes a valuation report template for real estate brokers wishing to use this model.
Note: If you want to analyze a portfolio of real estate properties, please consider purchasing the Real Estate Portfolio Template.
See below the walk-through video of this commercial real estate valuation model in more detail:
Discounted Cash Flow (DCF) Valuation in Real Estate
Commercial real estate valuation methods determine the market value of commercial properties, such as office buildings, retail centers, industrial facilities, and more. These methods help investors, appraisers, and real estate professionals assess the worth of a property for various purposes, including buying, selling, leasing, or securing financing. Some leading commercial real estate valuation methods are the comparable sales, cost, and income approaches.
The Income Approach through a Discounted Cash Flow Valuation (DCF) method is one of the most solid commercial real estate valuation methods since the analysis focuses on the expected future cash flows that can be derived when renting the property on the market and by taking into account the required capital expenditures (CAPEX) to get there.
Our Commercial Real Estate Excel Template Features
Our commercial real estate Excel template analyzes the contracted rent, forecasts the estimated rent roll, projects expected operating expenses, net operating income, and CAPEX, and discounts the Free Cash Flows to their present value. The model then also is helpful to look at the valuation from different angles:
- DCF Value
- Sensitivity Analysis to check the impact of key assumptions
- Relative Valuation metrics in terms of Gross Yield, Net Yield, Value per sq ft or sqm
- Replacement Value
- A Buyers point of view in terms of yield
The following elements are also included in this Commercial Real Estate Valuation Model Template (among others):
- Terms and abbreviations
- Short instructions
- Executive Summary, which contains all the financial summaries and chart
- Financial summary
- Rent Roll Summary
- Weighted average unexpired lease term (WAULT)
- Discounted Cash Flow Valuation result
- Replacement Value Analysis
- Buyer Yield Analysis – pro forma calculation of the levered cash flows for a buyer and yield analysis
- Main Assumptions
- Rent Roll Sheet
- Detailed table to enter up to 100 leasable areas, including area size, price, lease start, and end dates
- Summary of top tenants
- Monthly lease income projections based on annual lease escalation factor
- Calculation of WAULT
- Property Cash Flows
- Financial forecast of the property, including Rental Income, OPEX, NOI, Gross, and Net Yield
- Gross and Net Yields, etc.
- Discounted Cash Flow Valuation
- Fixed Asset Table
- Debt Schedule
- Tax Calculation
- Buyer’s Yield Analysis
- Buyer Financial Statements
- Income Statement
- Balance Sheet
- Cash Flow Statement
- Replacement Value
- Estimate of the property replacement costs
- Sensitivity Table (only included in PRO and PREMIUM Versions)
- Worksheet with Tables and Charts for the Valuation Report in PowerPoint (only included in the PREMIUM version)
The model can measure leasable areas in square feet (sq ft) or square meters. Simply change the assumption on the assumptions tab to switch to the metric. Also, the model offers the option to use a currency other than OPEX for rental income. Simply change the currency setting for the rent roll on the assumption section.
Discounted Cash Flow Valuation Report Template
Some customers use this model for a professional real estate valuation report. In the Premium version, we prepared a valuation report template and a separate sheet in the Excel model (sheet PPT), which summarizes suggested charts and tables for a DCF real estate valuation report. The Premium version was made for real estate brokers who like to use the model as a white-label solution for valuing their clients’ properties.
This commercial real estate valuation model is available in four versions:
(1) PDF Demo Versions – includes a preview of the BASIC, PRO, and PREMIUM version
(2) BASIC Excel Model Template (1 Excel File included)
(3) PRO Excel Model Template with Sensitivity Table (1 Excel File included)
(4) PREMIUM Excel Model with Sensitivity Table plus Valuation Report Template (1 Excel File + 1 PowerPoint File)
Filetypes:
.pdf (PDF)
.xlsx (Microsoft Excel)
.pptx (Microsoft PowerPoint)
Please also refer to the screenshots of the model.
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Unfortunately it wasn’t what I was looking for , I was looking at sales market rather than rental market
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Keep it up all models are well and the best!
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the tutorial is very helpful
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