The purpose of this post is to outline the key functions of the Other Capital Costs in CREModels Commercial Acquisition models. The tutorial will go over the inputs and the outputs of the Other Capital Costs section of the Commercial Acquisition model.
The Other Capital Costs section of the Commercial Acquisition model allows the user to enter expected capital costs and capital reserves. The user will be able to input the names of the names of the capital cost line items, the amounts (as a total $ amount or a PSF $), when the costs will be incurred, and the duration that the costs are incurred over. The model will use the information entered from the user in order to calculate the PSF amounts of each cost.
In the first column of the Other Capital Costs table, the user must enter the line item labels for each capital cost. Next, the user must enter the $ value of each cost as either a total $ Amount or in PSF $. The user can specify which unit is being used by selecting from the dropdowns in the Input Type column. Then, the user must enter the Start Month in which each capital cost is first incurred, as well as the Duration (months) over which the cost will be incurred. The total costs will be spread evenly over the Duration of months entered, beginning with the Start Month.
In the bottom row of the Other Capital Costs table, the user has the option to enter Capital Reserves as a $/SF/month value. Directly to the right of this input, the user must enter the number of SF for which the total Capital Reserves will be based on. Additionally, the user may enter an annual % increase for the Capital Reserves.