Every CRE financial metric — from NOI and cap rate to DSCR and IRR — is only as accurate as the underlying lease and financial data. These guides explain each metric and show why precise lease abstraction and financial spreading matter for accurate analysis.
Financial Metrics
Formula: NOI ÷ Property Value
Capitalization Rate (Cap Rate) in Commercial Real Estate
Capitalization Rate (Cap Rate) in Commercial Real Estate — learn the formula, calculation method, common mistakes, and how accurate lease data improves cap rate analysis.
Formula: Annual Pre-Tax Cash Flow ÷ Total Cash Invested
Cash-on-Cash Return in Commercial Real Estate
Cash-on-Cash Return in Commercial Real Estate — learn the formula, calculation method, common mistakes, and how accurate lease data improves cash on cash return analysis.
Formula: NOI ÷ Annual Debt Service
Debt Service Coverage Ratio (DSCR) in Commercial Real Estate
Debt Service Coverage Ratio (DSCR) in Commercial Real Estate — learn the formula, calculation method, common mistakes, and how accurate lease data improves dscr commercial real estate analysis.
Formula: GPR + Other Income − Vacancy Loss
Effective Gross Income (EGI) in Commercial Real Estate
Effective Gross Income (EGI) in Commercial Real Estate — learn the formula, calculation method, common mistakes, and how accurate lease data improves effective gross income analysis.
Formula: Property Price ÷ Gross Annual Rent
Gross Rent Multiplier (GRM) in Commercial Real Estate
Gross Rent Multiplier (GRM) in Commercial Real Estate — learn the formula, calculation method, common mistakes, and how accurate lease data improves gross rent multiplier analysis.
Formula: NPV = 0 (solve for r)
Internal Rate of Return (IRR) in Commercial Real Estate
Internal Rate of Return (IRR) in Commercial Real Estate — learn the formula, calculation method, common mistakes, and how accurate lease data improves internal rate of return analysis.
Formula: Loan Amount ÷ Property Value
Loan-to-Value Ratio (LTV) in Commercial Real Estate
Loan-to-Value Ratio (LTV) in Commercial Real Estate — learn the formula, calculation method, common mistakes, and how accurate lease data improves loan to value ratio analysis.
Formula: EGI − Operating Expenses
Net Operating Income (NOI) in Commercial Real Estate
Net Operating Income (NOI) in Commercial Real Estate — learn the formula, calculation method, common mistakes, and how accurate lease data improves net operating income analysis.
Formula: Total Occupancy Cost ÷ Tenant Gross Sales
Occupancy Cost Ratio in Commercial Real Estate
Occupancy Cost Ratio in Commercial Real Estate — learn the formula, calculation method, common mistakes, and how accurate lease data improves occupancy cost ratio analysis.
Formula: Σ (Remaining Term × Lease Value) ÷ Total Portfolio Value
Weighted Average Lease Term (WALT) in Commercial Real Estate
Weighted Average Lease Term (WALT) in Commercial Real Estate — learn the formula, calculation method, common mistakes, and how accurate lease data improves weighted average lease term analysis.
Accurate Data, Better Calculations
Crevanta extracts the underlying lease and financial data that feeds into CRE metrics — ensuring accuracy and consistency across your portfolio.