Commercial Cash Flow and 10-Year Excel Projections
Generate 10-year commercial investment reports projecting compound cashflow results.
Simulate index review rates, compound inflation offsets, average vacancy metrics, CapEx improvements, terminal capitalisation rates, and final internal rates of return (IRR).
Frequently Asked Questions
What is a good internal rate of return for Australian property?
For core direct Australian commercial property assets, investors typically target a 10-year Internal Rate of Return (IRR) of 8% to 11%. Higher-risk value-added opportunities or developments seek IRRs of 12% to 15% or more.
What is the differences between IRR and Cash on Cash Yield?
Cash on Cash Yield measures current cash distribution in a single year relative to equity invested. IRR calculates the annualized compound performance over the entire multi-year hold period, factoring in debt repayment, varying rent escalations, and capital gains upon sale.
Disclaimer: The estimations and rules detailed on this platform do not constitute legal or financial advice. Always verify metrics with a certified property professional, licensed accountant, or qualified commercial lawyer before entering into or executing any lease contract.