Need some guidance,
I am currently creating a pro forma for a possible industrial property and all of the tenants are on NNN leases. I am looking to see if any of you use a certain software that deals with NNN lease models. I am tripping up on how to project the cost of expenses since the tenants will pay for a majority of the expenses.
Any insight will be much appreciated,
I don't use a software, but basically you would show it as a tenant recapture income that is going to match the common area expense (or almost if there are some items being pro-rated over time).
Agreed with Lauren. It could also depend on how absolute the NNN leases are (any carvouts, caps, etc.).
Argus would be your best bet for software but can be expensive if you don't already have access.
There is a 99% chance this post gets removed, but my firm provides some free excel models that might be able to help you out. We can also help by providing an experienced team to do the underwriting for you. Best of luck!