Real Estate Model: Single Tenant Industrial

I've built a wide range of real estate models across many categories, including self-storage, multi-family, apartment buildings, mixed-use, condos, STRs, assisted living, hotels, and mobile home parks. However, single tenant industrial real estate underwriting is something I have not specifically built something for out of the box until now. This template has everything you need to fully analyze many different scenarios for the acquisition or new construction of industrial real estate targeted to single tenants.

$45.00 USD

After purchase, the template will be immediately available to download. It is also included in the real estate models bundle, joint venture bundle, and The Super Smart Bundle.

single tenant industrial

Template Features:

  • Monthly / annual pro forma driving down to NOI and cash flow.
  • Monthly / annual financial statements (3 statement model integration).
  • Plan for up to 15-year hold period.
  • Dynamic initial cost section for purchase price or construction / development costs (can be all up front over costs over time).
  • Financing options: Debt and Equity, debt can be initial construction loan (accrue or not accrue interest) or regular loan with two future REFI options. Equity can be single operator or LP/GP configuration.
  • REFI options based on cap rate and LTV % at REFI month.
  • 4 cash flow waterfall options (IRR hurdles or preferred return, each with monthly or annual cash flow convention).
  • IRR, NPV, DCF Analysis, Equity Multiple for all stakeholder views and project level.
  • Easily toggle assumptions for alternate scenario analysis.
Rental Income Assumptions:

  • Start Month of Rent
  • Rentable SQ. FT.
  • Rent per SQ. FT. per Year / per month
  • Annual Rent Increase
  • Starting Monthly Rent 
  • Starting Annual Rent
  • Average Vacancy Loss Reserve
    • Accounts for periods of turnover / tenant changes.
  • Other Monthly Ancillary Income
One new piece of logic I added to this is a set of assumptions for lease-up costs. What that means is fixed monthly expenses that have a start and end date. The other operating expenses all have a start date, but will continue until the forecast period stop month.

I do have advanced assumptions upon exit where the user can see depreciation recapture basis for taxes, capital gains basis, and operating income basis. Taxes apply accordingly or you can enter 0% if taxes don't hit the project level.

The joint venture waterfalls use monthly or annual cash flow convention. The annual cash flow convention assumes the initial equity is invested all up front and that flows to annual period waterfalls. The monthly cash flow convention assumes a negative cash flow month means there needs to be cash contributed and a positive cash flow month means a distribution. That flows to a monthly waterfall that converts annual rates (IRR Hurdles or pref. return) into monthly rates accordingly.

Even though single tenant industrial real estate often means there is not a whole lot of vacancy, but things happen and sometimes you will need to find a new tenant. In that case, you can account for vacancy loss in the rental income assumptions as a % of maximum rent. This can be thought of as a loss reserve to help in periods where there is no tenant for whatever reason over the forecast period.

Lease Agreement Type

You could have NNN (triple net lease), double net lease, absolute net lease, or just net lease. The model can handle any scenario by simply zeroing out costs that the landlord does not have to pay.

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