This section explains the Commercial Sales section, in the PDS SFC v5.0 sheet. For this example, set the values of the fields as given below:

  • Average Net Lettable Area / Unit - 175.0

  • Average Rental Rate m2 - 275.0

  • Outgoings Expenses / Unit - 8.0%

  • Capitalization Rate - 5.0%

 

Revenue - This section provides the Project GRV / Total Sales of the project based on the Residential Sales and Commercial Sales details. In this section, we will look at the Commercial Sales in detail. For more information on residential sales, refer to SFC Residential Sales.

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In order to determine what you are going to be selling any kind of commercial premises is by the amount of rent it can actually bring in and you capitalize that value. 

 

  • The Average Net Lettable Area / Unit is the average net area of each commercial unit that can be let out. 

  • The Average Rental Rate m2 is the average rent in the locality of the project, for each m2.

  • The Gross Rental Income will be calculated and displayed on the right pane. 

  • You can only capitalize on the net rent but you cannot capitalize on the gross rent because there will be certain outgoings that you have to deduct from the rent. All the expenses of a let-out commercial property are paid by the tenant. However, there will be certain expenses, called the Outgoing Expenses, which you will have to pay for each unit. Here again, you can either enter the exact amount for Outgoing Expenses / Unit or you can enter the percentage of the rent that you will be utilizing towards outgoing expenses.

  • The Net Rental Income will be calculated and displayed on the right pane.

  • Enter the Capitalization Rate based on the locality of your project. 

  • The Sales / Unit and the Total amounts will be calculated and displayed on the right pane.

  • The Project GRV / Total Sales (displayed on row no. 29) is the total amount that you will earn from the entire project, the sum total of Residential Sales, and Commercial/Retail Sales.