MODEL DESIGN
How to Build a Core Office Pro Forma Model
Overview
ARTICLE IN PROGRESS
We're writing a deep engineering essay on AQ-211. How we built it, the design choices behind it, and how to use it. The model itself is live and available today.
AQ-211 is the office model for stabilized assets. Long WALT, institutional tenant roster, no near-term rollover story. A full lease schedule lives in the model but there is no probability-weighted rollover engine because the deal thesis does not depend on speculative re-leasing. When rollover becomes the story, AQ-201 is the right model.
Planned Sections
When the full piece is published, it will cover:
- When office is "core": long WALT, institutional tenants, no near-term rollover.
- Design choice: full lease schedule but no probability-weighted rollover engine.
- Design choice: stabilized cap rate exit vs forward-curve.
- Design choice: line-item OpEx with reimbursement modeling.
- What the value-add office model (AQ-201) adds when rollover is the story.
- How to use the model for core office underwriting.
For an example of the engineering-essay format this article will follow, see how we engineered AQ-141, the Multifamily Opportunistic Pro Forma Model.
About the Model
AQ-211 is an Institutional-tier core office pro forma. Full lease schedule, line-item OpEx with reimbursement modeling, stabilized exit cap. Built for REPE shops underwriting stabilized office acquisitions with institutional-quality tenant rosters.