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Operating model · Register interest

Industrial performance, across the WALE.

Face rent, recoveries, market review and re-leasing through the hold. Operating NOI runs against contracted income, not yield on cost.

  • Inputs7 blocks
  • Outputs8 metrics
  • CashflowMonthly
  • ScenariosPlanned

What this model does

Industrial operating operating model, end to end.

Run the industrial asset across its WALE. Contracted rent, market review, recoveries and re-leasing downtime drive operating NOI, with the exit cap rate at the back end.

Calculation flow05 steps
  1. 01

    Asset

    GLA, tenant schedule, WALE and lease expiries captured.

  2. 02

    Contracted rent

    Face rent, fixed escalation and market review clauses applied.

  3. 03

    Recoveries

    Outgoings recovery, marketing levy and management fee split out.

  4. 04

    Hold cashflow

    NOI runs across the WALE, with re-leasing downtime and incentives modelled.

  5. 05

    Exit

    Exit cap rate applied to forward NOI; hold-period equity IRR returned.

Schema

Every input. Every output. In one view.

The full industrial operating operating model schema. 7 input blocks feeding 8 output metrics, with the calculation engine in between.

Inputs07 blocks
  1. 01

    Asset

    GLATenant countWALEOffice split
  2. 02

    Contracted rent

    Face rentFixed escalationMarket reviewIncentives
  3. 03

    Recoveries

    Outgoings recoveryMarketing levySinking fundBad debt
  4. 04

    Operating cost

    OutgoingsManagement feeInsuranceCapex reserve
  5. 05

    Re-leasing

    DowntimeLetting feeIncentive costFit-out contribution
  6. 06

    Hold finance

    Existing debtRefinance yearInterestCoupon
  7. 07

    Hold and exit

    Hold yearsExit cap rateSelling costInflation
Outputs08 metrics
Primary outputAt base case
Operating yield6.4%
MetricValue
  • Year-one NOI$11.2M
  • Exit value$192.0M
  • Recovery ratio94%
  • Stabilised vacancy4%
  • Hold-period IRR11.6%
  • Cash-on-cash7.2%
  • WALE6.8 years

Engine logic

Two engines. Scenarios and cashflow.

The two pieces that separate the industrial operating operating model from a spreadsheet. Scenarios that share one project, and a monthly cashflow wired to every input.

Scenarios01 / 02

Multiple scenarios, one project

Switchable in a click. No copied files.

  1. 01

    Market review uplift and re-leasing downtime as scenario levers.

  2. 02

    Vacancy and incentive cost per scenario.

  3. 03

    Refinance year and refinance terms per scenario.

  4. 04

    Each scenario carries its own exit cap rate.

Cashflow02 / 02

Monthly cashflow, fully connected

Every input touches the schedule.

  1. 01

    Monthly NOI across the WALE, with annual aggregation alongside.

  2. 02

    Contracted rent steps by fixed escalation, then market review.

  3. 03

    Recoveries net against outgoings; sinking fund accrues separately.

  4. 04

    Re-leasing downtime, letting fees and incentives modelled at expiry.

Excel replacement

Where the workbook quietly fails.

Every row is a recurring failure mode of the industrial operating operating workbook, and how the model handles it once.

SpreadsheetPopurise model
  • 01WALE assumed awayTenant schedule with expiries as a live input
  • 02Market reviews left as a single lineFixed escalation and market review modelled separately
  • 03Re-leasing downtime ignoredDowntime, letting fee and incentives modelled at expiry

Use and verify

What it decides. What to check first.

The decisions the industrial operating operating model is built to support, alongside the things to verify before you trust it on a live deal.

What it decidesUse cases
  1. 01

    Forecast hold NOI

    Face rent, escalation and market review through the WALE. NOI follows.

  2. 02

    Plan re-leasing

    Downtime, letting fee and incentives at expiry. Hold IRR follows.

  3. 03

    Right-size recovery

    Outgoings recovery and sinking fund as live inputs. Net rent reflects the deal.

  4. 04

    Pressure-test exit cap rate

    Exit cap rate sensitivity. Hold IRR follows.

Pre-flight checklist05 checks

  • Tenant schedule with expiries as a live input.

  • Face rent, fixed escalation and market review captured separately.

  • Recoveries, sinking fund and management fee split out.

  • Re-leasing downtime, letting fee and incentives at expiry.

  • Exit cap rate sensitivity as a scenario.

Worth checking before you stake a live deal on the industrial operating operating model.Register interest
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Questions

Industrial operating operating model, answered.

How Popurise handles the industrial operating operating model.

How is this different from the industrial feasibility model?

Feasibility answers whether to build. Operating answers how the stabilised asset runs across the WALE.

Does it handle multi-tenant estates?

Yes. Tenant schedule, WALE and expiries live as inputs. Re-leasing modelled at each expiry.

How are recoveries modelled?

Outgoings recovery, marketing levy and sinking fund split out separately, not a flat percentage.

Can I model fixed escalation and market review together?

Yes. Fixed escalation runs through the term, with market review clauses on top.

Shape the industrial operating model in Popurise.

Tell us how your team runs this asset today. We are building the operating model with the owners and operators who will use it.

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