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home/Knowledge Base/I have a question about a model.../Industrial Real Estate Development Model/Why should I use the industrial development model instead of the AIO?
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Why should I use the industrial development model instead of the AIO?

12 views 0 July 30, 2020 Updated on November 26, 2022

This model is meant to be used in scenarios where you intend to develop, lease-up, and then sell an industrial property. The inputs are best suited for warehouse and distribution facilities, although other industrial subproperty types are also compatible.

The model is not well-suited for build-to-core scenarios (i.e. develop, lease-up, and hold). It includes the option to incorporate construction financing and various forms of equity, but the model assumes that financing is paid off at sale.

If you are looking to model scenarios where you intend to hold the property long-term, the All-in-One model is a better fit.

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Industrial Real Estate Development Model

  • Why should I use the industrial development model instead of the AIO?
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  • Why is the Equity amount (cell I54) left as a hard-coded value?

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Why is the Equity amount (cell I54) left as a hard-coded value?  

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