Free Spreadsheet Download
Lease Cash Flow Analysis – Template
Our cash flow analysis – excel template will help you determine whether a lease is financially viable.
Site Survey Checklist – PDF Template
Are you thinking about leasing a commercial property? If so, you need to make sure that you do your due diligence before signing a lease. One of the most important things you can do is conduct an in-depth commercial tenant site survey. By conducting a thorough survey, you can avoid costly surprises and ensure that you are leasing a property that is suitable for your needs.
Frequently Asked Questions:
Lease cash flow analysis is a financial tool that estimates the cash inflows and outflows associated with a commercial lease. It helps tenants assess the financial viability of a lease, making informed decisions that can impact their business success.
The three primary components are net cash flow, cash inflows (like revenue from sales), and cash outflows (including lease payments and operating expenses). These components allow tenants to track the movement of money and evaluate potential cash flow issues.
To prepare an operating cash flow statement, you can use either the direct method, which lists cash collections and disbursements, or the indirect method, which starts with net income and adjusts for non-cash items. Both methods aim to provide a clear picture of your operating cash flow
Tenants should consider standard deductions for operating expenses like maintenance and property management fees, as well as tenant improvements made to the leased space. Understanding these deductions helps in budgeting and lease negotiations.
An Excel template streamlines the cash flow analysis process by allowing tenants to input necessary data, automatically calculating net cash flow, cash inflows, and cash outflows. This efficiency makes it easier to evaluate the financial viability of a commercial lease.