Commercial real estate agency financial model, built free.
A three-statement Excel model for a commercial real estate services firm, built from your own figures and checked to balance.
- Free account
- No card
- Usually ready within the hour
We use generative AI in parts of our process, so mistakes can occur. Every model should be checked by a person before it is relied on. Read more
Earns fees from capital markets transactions, leasing, valuations and advisory, property, facilities and project management, and often an investment management arm, for commercial property owners and occupiers.
In short
- 01
Three linked statements
Income statement, balance sheet and cash flow, linked in every period.
- 02
Valued three ways
Discounted cash flow, trading multiples and sum of the parts, side by side.
- 03
Monthly to annual
Monthly, quarterly, half-yearly or annual periods, for up to 30 years.
- 04
Checked every period
A Checks sheet shows the balance sheet balances and the cash reconciles.
The sample, as Excel draws it.
Built by the same system and checks as yours, on illustrative figures: every sheet as Excel draws it, or live.
Illustrative figures: the sample describes no real business. The live preview shows values; your model’s Excel file has every formula.
How the model works for a commercial real estate agency.
- How it earns revenue3 formulasBase management fees · All managed property fundsBase management feesFees on commitmentsFees on invested capitalPerformance fees · All managed property fundsPerformance feesProbability-weighted fee for the yearCrystallisation highly probable1 in the last period of each yearProperty management fees (the rent roll) · Across the businessProperty management feesProperty-years managedAverage fee income per property (a year)
- What drives its costs3 formulasAgent and property manager costs · Across the businessCommission earned by agentsTop-performer commissionEstablished-agent commissionJunior-agent commissionAgent and property manager costs · Across the businessAgent costsAgent paySuperannuation and payroll taxAgent and property manager costs · Across the businessGross commission income shared with agentsCommercial services feesfrom commercial real estate services feesShare of the income that is agents' GCI
- What it invests in3 formulasAcquired rent rolls, strata books and management rights · Across the businessPrice paid for books acquiredAnnual fees of books acquiredPurchase multiple of annual feesAcquired rent rolls, strata books and management rights · Across the businessAmortisation of management rightsAmortisation of opening management rightsAmortisation of books acquired (from mid-period)from from mid-periodAcquired rent rolls, strata books and management rights · Across the businessClosing management rightsOpening management rightsPrice paid for books acquiredAmortisation of management rights
- How it is funded3 formulasDebtClosing balanceOpening balanceDrawdownsRepaymentsDebtInterest expenseOpening balanceAll-in interest rateshare of the yearDividends and distributionsClosing dividends payableOpening dividends payableDividends declaredDividends paid
- How profit becomes cash3 formulasWorking capitalTrade receivablesRevenuefrom statementsDebtor daysDays in periodWorking capitalInventoryDirect costs (positive)from statementsInventory daysDays in periodWorking capitalTrade payablesCash operating costs (positive)from statementsCreditor daysDays in period
21 parts, each one tested.
Every part is a tested building block with its own checks: yours is put together from the ones your business needs.
- CPI forecastCPI glide path
- Operating expensesOperating expense line items
- Corporate costsFixed cost base indexed to CPI
- Working capitalDays-based working capital
- Income taxCorporate rate with tax losses
- DebtSingle debt facility
- Dividends and distributionsPayout of net profit
- Discounted cash flow valuationDCF on free cash flow to the firm
- Multiples valuationEV / EBITDA multiple
- LeasesLease register
- Key-metric summaryStandard growth, margin and leverage metrics
- Discount rate (WACC)CAPM at target gearing
- Sum of the partsRegister of parts on mixed bases
- Property management fees (the rent roll)Average annual fee per managed propertyFees for managing rental properties on behalf of landlords, and the size of the managed book.
- Commercial real estate services feesFee-earners × revenue per fee-earnerCapital markets, leasing, valuation and advisory, and project management fees.
- Agent and property manager costsCommission split by agent tierThe direct cost of fee-earners — sales agents' commission splits, salaried agents and property managers, and franchise fees paid by franchisee offices.
- Acquired rent rolls, strata books and management rightsPrice as a multiple of annual feesBuying management books from other agencies or strata managers, capitalised as intangibles and amortised.
- Enterprise value to equity bridgeNet debt at the valuation date
- Assets under managementAUM roll-forward by flow typeThe fund's assets under management over time — the base on which most fees are charged.
- Base management feesFee on commitments then invested capitalRecurring fees charged on the fund's assets, equity or commitments.
- Performance feesProbability-weighted crystallisationFees earned when fund returns beat a benchmark or hurdle.
The numbers it tracks.
- 01fee revenue by service line
- 02transaction and leasing volumes
- 03recurring revenue share
- 04fee-earner productivity
- 05EBITDA margin
What it is used for.
- Operating forecastGuide · Financial projections
- Budget and rolling forecastGuide · Cash flow forecast
- ValuationGuide · DCF valuation model
- Lending and credit analysisGuide · Three-statement model
- Merger or acquisition (strategic)Guide · Financial modelling services
- Scenarios and sensitivities
More in property funds and services.
- Property syndicator financial model
- Unlisted property fund or syndicate financial model
- Property funds manager financial model
- Real estate agency financial model
- Strata management company financial model
Looking for a commercial real estate agency financial model template? Ours arrives built for your business, with your figures in it.
See a finished model, sheet by sheetThe sample is built on illustrative figures and describes no real business. Models are calculations prepared from the information you provide. They are not financial advice and must be independently verified. See our terms.