23 - [06] Comm_Units

Summary

  • :building_construction: Commercial and Residential Units:
    Commercial units work similarly to residential ones. These units can be designed to sell or be retained for future rental income.
  • :arrows_counterclockwise: Build-to-Rent Strategy:
    The video highlights a “build-to-rent” model, where developers primarily focus on retaining units post-construction rather than selling them outright.
  • :computer: Dashboard Features:
    The dashboard offers options to toggle details like average construction costs, gross floor area, and manual sale values. Adjustments can be saved and refreshed for accuracy.
  • :bulb: Detailed Metrics:
    Metrics such as square meter rates, total built area, net rentable area, and operating expenses must be entered manually if not automated. These are crucial for accurate projections.
  • :bar_chart: Economic Efficiency and Forecasting:
    Factors like exit cap rates, vacancy rates, and operating expenses are configured in the dashboard to calculate profitability and efficiency.
  • :construction: Flexibility in Retention or Sale:
    The platform supports flexibility for developers to sell or retain units, with most emphasis on build-to-rent scenarios.

Insights Based on Numbers

  • Exit Cap Rate (7%): This percentage influences the valuation of rental income streams and project profitability.
  • Metrics Dependence: Total built area, net rentable area, and efficiency percentages dictate the viability of construction projects.