Purpose
The purpose of this post is to outline the key functions of the Other Income in the CREModels Commercial Acquisition model. The tutorial will walk through the user inputs and how the outputs are calculated.
Overview
The Other Income table can be found under the Commercial Assumptions section of the INPUTS tab. The purpose of this section is to allow the user to add additional items of revenue not generated from leased spaces. The full table for Other Income is shown below.
Inputs
Other Income
The first column of the Other Income table is the label inputs for the sources of Other Income. The example above uses generic item names (Rev 1, Rev 2, Rev 3), but examples of items that could potentially be added as Other Income would be Reserved Parking, Event Income, Storage Income, etc.
$ / %
The second column of the Other Income table is the value inputs for the Other Income line items. The user can enter values as either a $ input or a % input. This input will be used in conjunction with the Input Type selection in the following column to calculate the total initial Other Income from each line item.
Input Type
In the Input Type column, the user can select how the value input should be used in the model’s calculations from three different options: Total $ Amount / Yr, % of SBR, and % of Reimbursement Revenue. If Total $ Amount / Yr is selected, the model will use the value input as the total $ of income for this line item during the first 12 months of this income, commencing with the applicable Start Month input. If % of SBR is selected, the Other Income line item will be calculated as a % of Scheduled Base Rent. Similarly, if % of Reimbursement Revenue is selected, the Other Income line item will be calculated as a % of total Reimbursement Revenue.
% Increase
If Input Type Total $ Amount / Yr is selected, the % Increase input will become visible. This input allows the user to increase the Other Income line item annually by the input %.
Start Month
In the Start Month column, the user must enter the month of the analysis in which the Other Income source begins.
End Month
In the End Month column, the user must enter the month of the analysis in which the Other Income source ceases. If you would like the income to go the entire hold period, then input an end month greater than 132 when using a 10 year model. This will ensure you forward 12 NOI calculation includes the other income added.
Outputs
PSF Amt
In the last column of the Other Income table, the initial PSF Amt of each Other Income line item is displayed. The PSF Amt values are calculated using the total SF of the property (input in the General Info section).