Commercial Real Estate Articles
Proforma Income Statement Terms and Methods
for Investment and Development Cash Flow Analysis

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Commmercial Real Estate Ratio Explanations

• Commmercial Real Estate Ratio Explanations
• How is the Commmercial Real Estate Ratio Explanations calculated for commercial real estate investments and developments? What are the factors that the Commmercial Real Estate Ratio Explanations takes into consideration when shown in a proforma income statement, and what is ignored? Why is the Commmercial Real Estate Ratio Explanations useful for investment real estate? These are the questions that are explored using the Proforma Example in this article.

• Return on Investment (ROI) for Investment Real Estate
• How is the Return on Investment (ROI) for Investment Real Estate calculated for commercial real estate investments and developments? What are the factors that the Return on Investment (ROI) for Investment Real Estate takes into consideration when shown in a proforma income statement, and what is ignored? Why is the Return on Investment (ROI) for Investment Real Estate useful for investment real estate? These are the questions that are explored using the Proforma Example in this article.

• Capitalization Rate
• How is the Capitalization Rate calculated for commercial real estate investments and developments? What are the factors that the Capitalization Rate takes into consideration when shown in a proforma income statement, and what is ignored? Why is the Capitalization Rate useful for investment real estate? These are the questions that are explored using the Proforma Example in this article.

• Cash on Cash Return for Real Estate
• How is the Cash on Cash Return for Real Estate calculated for commercial real estate investments and developments? What are the factors that the Cash on Cash Return for Real Estate takes into consideration when shown in a proforma income statement, and what is ignored? Why is the Cash on Cash Return for Real Estate useful for investment real estate? These are the questions that are explored using the Proforma Example in this article.

• Debt Coverage Ratio (DCR)
• How is the Debt Coverage Ratio (DCR) calculated for commercial real estate investments and developments? What are the factors that the Debt Coverage Ratio (DCR) takes into consideration when shown in a proforma income statement, and what is ignored? Why is the Debt Coverage Ratio (DCR) useful for investment real estate? These are the questions that are explored using the Proforma Example in this article.

• Gross Income Multiplier
• How is the Gross Income Multiplier calculated for commercial real estate investments and developments? What are the factors that the Gross Income Multiplier takes into consideration when shown in a proforma income statement, and what is ignored? Why is the Gross Income Multiplier useful for investment real estate? These are the questions that are explored using the Proforma Example in this article.

• Adj Capitalization Rate
• How is the Adj Capitalization Rate calculated for commercial real estate investments and developments? What are the factors that the Adj Capitalization Rate takes into consideration when shown in a proforma income statement, and what is ignored? Why is the Adj Capitalization Rate useful for investment real estate? These are the questions that are explored using the Proforma Example in this article.

• Adj Cash on Cash
• How is the Adj Cash on Cash calculated for commercial real estate investments and developments? What are the factors that the Adj Cash on Cash takes into consideration when shown in a proforma income statement, and what is ignored? Why is the Adj Cash on Cash useful for investment real estate? These are the questions that are explored using the Proforma Example in this article.

• Breakeven Occupancy
• How is the Breakeven Occupancy calculated for commercial real estate investments and developments? What are the factors that the Breakeven Occupancy takes into consideration when shown in a proforma income statement, and what is ignored? Why is the Breakeven Occupancy useful for investment real estate? These are the questions that are explored using the Proforma Example in this article.

• NOI/Property Value
• How is the NOI/Property Value calculated for commercial real estate investments and developments? What are the factors that the NOI/Property Value takes into consideration when shown in a proforma income statement, and what is ignored? Why is the NOI/Property Value useful for investment real estate? These are the questions that are explored using the Proforma Example in this article.

• Loan Balance/Property Value
• How is the Loan Balance/Property Value calculated for commercial real estate investments and developments? What are the factors that the Loan Balance/Property Value takes into consideration when shown in a proforma income statement, and what is ignored? Why is the Loan Balance/Property Value useful for investment real estate? These are the questions that are explored using the Proforma Example in this article.

• Operating Expense Ratio
• How is the Operating Expense Ratio calculated for commercial real estate investments and developments? What are the factors that the Operating Expense Ratio takes into consideration when shown in a proforma income statement, and what is ignored? Why is the Operating Expense Ratio useful for investment real estate? These are the questions that are explored using the Proforma Example in this article.

• Current Rate of Return
• How is the Current Rate of Return calculated for commercial real estate investments and developments? What are the factors that the Current Rate of Return takes into consideration when shown in a proforma income statement, and what is ignored? Why is the Current Rate of Return useful for investment real estate? These are the questions that are explored using the Proforma Example in this article.

• Accounting Rate of Return
• How is the Accounting Rate of Return calculated for commercial real estate investments and developments? What are the factors that the Accounting Rate of Return takes into consideration when shown in a proforma income statement, and what is ignored? Why is the Accounting Rate of Return useful for investment real estate? These are the questions that are explored using the Proforma Example in this article.

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Written by
Michael Feakins, CCIM
of planEASe Software