At www.PropPro247.com we automate the correct formula’s and methodology to effectively evaluate and analyse Commercial Property. Most Commercial Property Brokers will use the Cap Rate method in order to produce a Value of a particular Commercial Property.
We make use of Net Present Value (NPV), Internal Rate of Return (IRR), Modified Internal rate of Return (MIRR). Cash Flow analysis, and XIRR-XNPV where relevant. It is not possible to value the continued stream of income, the escalating income and costs, the exit prices etc with the Cap Rate method which only measures returns for year 1 of the Commercial Property.
The Importance and relevance of MIRR in particular cannot be overstated when performing a Commercial Property Valuation. The MIRR with other formula is imperative for Investment Analysts, Fund Managers, Property Portfolio Managers and Funders/Bankers. In order to proceed with any Commercial, Industrial Property Investment, the MIRR must meet certain required returns.
Should you wish to demo our “easy to use” calculators for Commercial Property, Investment Property, Development Property Valuations then mail us at propscience@proppro.com or datascience@tomprop.com
