Office Property Valuation Template (DCF Valuation)

OFFICE PROPERTY VALUATION model allows you to determine the value of the property. The model generates discounted cash flow calculations to determine estimated property value. This model is created for office buildings, however, could be also used to determine the value of other cash-flow generating properties.

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This financial model is an effective and easy-to-use tool for real estate valuation.

The Step-by-Step Process to use this financial model template:
Step 1: Set up the model Inputs: model currency, model start date (by default it is a 10-years financial projection). Also need to input the tenancy situation in the property for each tenant (leaseable area, parking permits that each tenant has, actual rent price per month, and other monthly income (it could be additional rental income from the logo on the building and so on).
Step 2: Make the calculations for WACC, which is used for DISCOUNT RATE to determine. All assumptions should be based on market practice (how much own funds are normally used in market transactions for such buildings to acquire, how much debt, and what is the price is for each). Normally, these assumptions are from the market transactions and can be found in real estate reviews.
Step 3: review calculations that are based on the calculation sheet. You have to make sure that long-term rental growth is correctly calculated for the rented area.
Step 4: Review the DCF VALUATION SHEET and make sure that there are no refs.

In case there are questions or queries regarding the model, I am able to provide assistance.

Important Notice: Yellow indicates inputs and assumptions that the user is able to change.

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