Simple Acquisition Model for Office, Retail, and Industrial Deals [Video]

A few years back, on a sleepy Saturday afternoon while my kids were busy eating Halloween candy, I decided to create a simple real estate acquisition model in Excel for office, retail, and industrial deals.

Since then, I’ve made various updates, including error fixes and functional improvements. The model calculates returns at the property and partnership level, on an unlevered and levered basis. The operating cash flow module is very basic, but the tool still serves as a decent first pass acquisition model.

As of v4.0, the model includes time-driven growth and vacancy assumptions, the ability to add sponsor fees, operating history inputs for enhanced underwriting, square feet and square meter inputs, IRR plus Equity Multiple hurdles, and other changes. See the changelog at the bottom of this page for more details.

As of v5.0, the model has been converted to a single-worksheet model to allow for quick portfolio and/or mixed-use analysis. This …