Real Estate Acquisition Model – Rent Roll, Levered and Unlevered IRR, Debt, DSCR and Sensitivities (Office / Commercial)

Commercial Real Estate Properties, Real Estate

Cash Flow Projections, Cash on Cash Yield, Dashboard, DCF Model, Debt Schedule, Debt Service Coverage, Excel, Financial Model, Financial Modeling, Financial Planning, Financial Projections, Forecasting, Gross Yield, Investment Multiple, IRR (Internal Rate of Return), Levered Yield, Net Yield, NPV (Net Present Value), Property Valuation, Real Estate Valuation, Rental Income, Sensitivity Analysis, Weighted Average Unexpired Lease Term (WAULT)

This model answers the question every acquisitions team asks before making an offer: at this price, with this debt, what return does the equity make, and how much can the price move before the deal stops working?

How it works

Inputs: purchase price, transfer taxes and acquisition fees, rent indexation, ERV growth, vacancy and credit loss, non-recoverable costs, management fee, capex reserve and initial capex, letting fees, hold period (1 to 10 years), exit cap rate, disposal costs, loan to value, interest rate, arrangement fee, amortisation and discount rate.
Rent roll: up to 8 tenants with area, current rent, lease expiry, market rent (ERV) per sqm, downtime and rent-free months. Existing rents are indexed until expiry, then each unit is re-let at ERV after downtime and rent-free, with a letting fee in the year of re-letting. Vacant units at acquisition are handled the same way.
Cash flow: annual rent by tenant, gross potential rent, vacancy, effective income, operating costs, NOI, capex, letting fees, acquisition costs, exit value on forward NOI, disposal costs, unlevered cash flow, loan drawdown, interest, amortisation, repayment on sale and levered cash flow. Columns after the hold period are greyed for reference.

Outputs on the Dashboard

Sources and uses: price, acquisition costs, arrangement fee, loan and equity
Entry: passing rent, ERV, gross and net initial yield, reversionary potential, occupancy
Returns: unlevered IRR, levered IRR, equity multiple, NPV of equity, profit, exit value and exit value per sqm
Debt: minimum DSCR, minimum ICR, year 1 debt yield and cash-on-cash
Charts of NOI by year and levered cash flow

Sensitivity

Levered IRR, unlevered IRR and equity multiple for 25 combinations of purchase price and exit cap rate. Every cell is a full recalculation written in plain formulas: no data tables, no macros, it updates instantly and works in Excel and Google Sheets.

Built to be trusted

Seven automatic checks: hold period, inputs, whole-year expiries, loan fully repaid on sale, sources equal uses, levered flows tie to unlevered plus financing, sensitivity base case equals the model result
Blue inputs, black formulas, green links, no hard-coded numbers in formulas
No macros, no hidden sheets, Instructions tab included

Tabs: Instructions, Dashboard, Inputs, Rent Roll, Cash Flow, Sensitivity, Checks.

Example data is fictional: a 10,000 sqm office building bought for 42m at a 5.6% net initial yield, 55% LTV, 7-year hold, giving an 8.2% unlevered IRR, 11.1% levered IRR, 1.95x equity multiple and a minimum DSCR of 1.86x.

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