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Office Cost Sensitivity Example

Launch Feature

Follow the simplified 10,000-square-foot example and see how cost, debt, and income connect.

The question

How does a higher budget change equity and annual cash?

Follow the changed assumption

Compare the base case with higher construction costs or stronger income. Each chapter shows the assumption and the fixed results it affects.

Simplified 10,000-SF illustration with interest-only debt. It omits fees, taxes, principal payments, and changes over time.

Office cost comparison

1 / 3 · Base case
Assumption in the app
Hard cost / SF$185
Net operating income$210,000

Depicted app input, not an active website control.

Results it affects
Hard cost$1,850,000
Other project costs$650,000
Total cost$2,500,000
Loan (60% of total cost)$1,500,000
Equity$1,000,000
Annual interest (6.5%)$97,500
Annual cash after interest$112,500
Cash-on-cash11.25%
Starting point: $185/SF and $210,000 NOI. Net operating income (NOI) is income after operating expenses. A simplified example with interest-only debt. It leaves out fees, taxes, principal payments, and changes over time.

Use ← → keys to move between chapters

Browse fixed illustrative scenarios. The website does not change model assumptions.

Compare the results

Review which assumptions changed and what stayed the same in each scenario.

Base case

Hard cost $185/SF and NOI $210,000. Cash-on-cash: 11.25%.

Higher build cost

Hard cost $210/SF. Cash-on-cash: 9.34%.

Stronger income

NOI $226,800 with the base cost and funding assumptions. Cash-on-cash: 12.93%.

Fixed illustrative results · Timing and risk are outside this simplified example.

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Bring your own assumptions

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