First of all, Wishing every one Merry Xmas and Happy Safe Holidays!
For development project pro-forma of any type residential/commercial/industrial/...., is market trend data referred for financials both cost and earnings, project duration by feasibility experts team; or it is industry experience of Developer who provide this data.
What is industry practice? use market trend data or developers use their own data from experience?
Rental Property Investor · Barstow, CA · Member since 2015 · 131 posts · 102 votes
5y
Proforma reports are essentially an educated guess based on current market conditions and even though experience is not a market condition that you can use to derive your guess , it can still add weight to your proforma report.
Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
5y
"What is industry practice? use market trend data or developers use their own data from experience?"
Like brokers, lot of guys do pro formas to make the property as good as they can. Hence, you need to parse their assumptions carefully. You really need a dis-interested party that understands apartment operations to take a look at the numbers and tell you if they're believable or not.