The purpose of this post is to outline the key functions of the Rent Roll in CREModels Commercial Acquisition models. The tutorial will go through what to input into the model and how the outputs are calculated.
The Rent Roll Assumptions section in the Commercial Acquisition Model provides inputs to enter all tenant information for terms, rent, reimbursements, tenant improvements, leasing commissions, and more that will be needed to project future potential income.
Note: Free Rent, Tenant Improvements, and Leasing Commissions entered in the Rent Roll will only be applied at the start of the term of that tenant (as determined by the Start Date entered for that tenant). Once that unit is turned over, the Rent Abatement, Tenant Improvements, and Lease Commissions input of the New Lease Assumptions table will apply.
Turnover Assumptions are based on the inputs entered in the New Lease Assumptions table below the Rent Roll. In this table, the user can enter assumptions for renewal probability, rent, term, tenant improvements, leasing commissions, free rent, and downtime. These new lease assumptions will then become selectable options in the dropdown of the Turnover Assumption column of the Rent Roll table and the user can then assign each of these new lease assumptions to the appropriate tenant. If the user wishes to override the renewal probability of the Turnover Assumption assigned to a tenant, the user can enter the assumed renewal probability for that tenant as a % in the Renewal Probability Override % column. This override will be applicable throughout the course of the analysis.