Preparing the pro forma is not for the faint of heart or for the person without a great deal of patience. Preparing a dynamic pro forma, where worksheets are linked through named and cell references, is time-consuming. This article will provide a useful guide for preparing the financial analysis to evaluate a single tenant building with an escalating rent structure. This analysis can be applied to a variety of real estate investments with a single tenant.
The process follows a similar format outlined in article titled “Preparing, Evaluating, & Analyzing the Real Estate Land Development Pro Forma”.