The purpose of this post is to outline the key functions of the Capital Expenditures section in CREModels Commercial Development models. The tutorial will go through what to input into this section of the model and what to expect as outputs.
In the Commercial Development model, all Capital Expenditures (CapEx) for a property can be entered in the table under the section Capital Expenditures. The table allows the user to input the capital expenditure, amount, the input type the amount is based (which is either a total $ amount or a $/NRSF amount), the start month of such CapEx items, and the duration which such CapEx will continue for. With these inputs, the model will calculate the total and PSF amounts of each CapEx item.
Capital Expenditures will be deducted below Net Operating Income and therefore will not be include in Net Operating Income.