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A 14,000 m² A-grade tower, pre-let or speculative.

Sample assumptions, the leasing waterfall, and the scenario that switches the deal from a build risk to a lease-up risk.

Scale14
Program36 months
Yield on cost6.38%

02 / Sample assumptions

The market context behind the numbers.

Pricing benchmarks, build rates and finance terms used in this office example. Every one is editable in Popurise.

Assumption sheet07 lines

Face rent: $780 / m² net
Incentive: 32% net of rent
Lease term: 7 years plus 5
Outgoings recovery: 100% on net leases
Exit cap rate: 6.25%
Construction rate: $5,400 / m² GFA
Senior debt: 50% LVR, 7.75% all-in

03 / Key inputs

The inputs that drive the deal.

Grouped the way Popurise groups them. Change a category, watch the office output set respond.

0105 items

Site and NLA

Site area: 1,650 m²
GFA: 17,800 m²
NLA: 14,000 m²
Efficiency: 79%
Car spaces: 120 basement

0205 items

Cost stack

Land: $42.0M
Construction: $96.1M
Professional and authority: $10.2M
Finance: $11.4M
Marketing and leasing: $3.6M

0304 items

Revenue and exit

Face rent: $10.92M pa
Effective rent: $7.43M pa
Stabilised NOI: $10.42M pa
Exit value: $167.0M

04 / Base case outputs

The output set, in full.

Every number a developer wants on the screen for a office deal, in one place.

Hero outputYield on cost

6.38%

Secondary metrics07 lines

Total development cost
$163.3M
Stabilised NOI
$10.42M pa
Exit value
$167.0M
Development margin
2.3%
Equity IRR (sell stabilised)
12.4%
Peak debt
$82.0M
Cost per m² NLA
$11,664

05 / Scenarios

Base, downside, stretch. Side by side.

Three scenarios on the same office project. No copied files. The decision is which one to take to investment committee.

Base case

base

Speculative build, 6 month lease-up at $780 net.

Yield on cost6.38%
Spread to exit cap+13 bps
Equity IRR12.4%
Development margin2.3%

Verdict

Spread is thin. The deal does not have room if leasing slips.

Downside

downside

Incentive lifts to 38%. Lease-up runs 14 months.

Yield on cost5.71%
Spread to exit cap−54 bps
Equity IRR6.1%
Effective rent$6.78M pa

Verdict

Spread inverts. The deal becomes a hold to recover, not a development.

Stretch

stretch

Anchor pre-let for 8,000 m² at $810 net, 30% incentive.

Yield on cost6.85%
Spread to exit cap+60 bps
Equity IRR16.2%
Lease-up riskReduced to 6,000 m²

Verdict

Pre-let resets the risk profile. The investment case becomes credible.

06 / Decision takeaway

Office is the canonical incentive driven deal. Face rent looks fine, effective rent decides the answer. A pre-let on the anchor tenant moves the deal from build and lease-up risk to a construction execution problem.

Office feasibility solution

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Office feasibility model

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Shape office feasibility in Popurise.

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