Determining Financing Cost from Cash Flow

We milestone an overall development schedule for design, construction and delivery of the space. This serves as our foundation to estimate soft costs and cash flow.

Shown below is our sample product, a special cash flow template that translates into a proposed rental rate depending upon the input variables used. The format is part of our book, Determining Building Worth, offered on CD-ROM.


Project Cash Flow

Project:

Office Building Headquarters

Date:

Jan-98

Location:

Atlanta, Georgia

Annual Interest

8.50

%

Interest Rate =

0.007083

%

Const. Retention

10.00

%

Monthly

Construction

Design

Other Soft

Cumulative

Monthly

Cash

Month

Cost

Fees

Costs

Payments

Interest

Flow

0

0

0

1,583,609

1,583,609

11,217

1,594,826

1

0

147,467

6,700

1,737,776

12,309

166,477

2

0

147,467

27,130

1,912,374

13,546

188,143

3

0

147,467

60,060

2,119,901

15,016

222,543

4

0

147,467

42,130

2,309,498

16,359

205,956

5

0

147,467

27,130

2,484,095

17,596

192,193

6

0

147,467

50,060

2,681,622

18,995

216,522

7

0

147,467

27,130

2,856,220

20,232

194,829

8

0

147,467

117,130

3,120,817

22,106

286,703

9

722,290

33,791

154,178

4,031,076

28,553

938,812

10

825,474

33,791

154,178

5,044,519

35,732

1,049,175

11

1,031,842

33,791

39,529

6,149,681

43,560

1,148,722

12

1,650,948

33,791

87,529

7,921,948

56,114

1,828,381

13

1,754,132

33,791

37,529

9,747,400

69,044

1,894,496

14

1,754,132

33,791

37,529

11,572,852

81,974

1,907,426

15

1,754,132

33,791

37,529

13,398,304

94,905

1,920,356

16

1,754,132

33,791

37,529

15,223,756

107,835

1,933,287

17

1,547,763

33,791

37,529

16,842,839

119,303

1,738,387

18

1,444,579

33,791

37,529

18,358,738

130,041

1,645,940

19

1,341,395

33,791

37,529

19,771,453

140,048

1,552,763

20

1,031,842

33,791

37,529

20,874,615

147,862

1,251,024

21

928,658

33,791

37,529

21,874,593

154,945

1,154,923

22

825,474

33,791

37,529

22,771,387

161,297

1,058,091

23

722,290

33,791

37,529

23,564,997

166,919

960,528

24

619,105

33,791

37,529

24,255,422

171,809

862,235

25

619,105

33,791

37,529

24,945,847

176,700

867,125

26

309,553

33,791

41,029

25,330,220

179,422

563,795

27

2,292,983

33,791

1,302,169

28,959,163

205,127

3,834,071

$ 22,929,827

$ 1,821,775

$ 4,207,562

$ 2,418,567

$ 31,377,730



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