| Financial Modeling | | | | calculations of net present value or internal rates of |
| Financial Modeling is essential for making decisions to | | | | return (IRR). |
| acquire, keep or sell investment real estate. The | | | | O'Connor & Associates has prepared financial models |
| central aim is to provide a framework evaluating | | | | of income and expenses and projections of future |
| options and risks. Financial modeling is also utilized | | | | income and expenses for over 10,000 commercial |
| for decisions regarding material capital expenditures | | | | properties. O'Connor and Associates is the largest |
| and leases. Financial modeling is used regularly by | | | | independent appraisal firm in the southwestern United |
| operating businesses to make a variety of decisions. | | | | States and has over 40 full-time staff members |
| Properties with multiple complex leases particularly | | | | engaged full-time in valuation and market study |
| benefit from the use of complex software such as | | | | assignments. Their expertise includes financial models, |
| Argus to evaluate the effect of leases terminating | | | | valuing businesses, commercial and single-family real |
| and being renewed overtime. Financial modeling is also | | | | estate, business personal property, purchase price |
| used to evaluate complex iterative scenarios with | | | | allocation for businesses, valuation for property tax |
| multiple options. | | | | appeals, partial interest valuation, estate tax valuation, |
| | | | expert witness testimony, and valuation for |
| Research and analysis regarding the current status | | | | condemnation. They have performed over 20,000 |
| and health of the market and probable future | | | | appraisals since 1988. |
| prospects for the market are the next step in | | | | To obtain a quote or further information regarding |
| preparing a financial model. For real estate, data such | | | | financial model, contact To obtain a quote or further |
| as occupancy rates, rental rate trends, economic | | | | information regarding financial model, contact Larry |
| vacancy, properties under construction in the | | | | Brewster at 713-686-9955 or fill out our online form. |
| metropolitan area, properties under construction in | | | | The appraisal division of O'Connor & Associates is a |
| the submarket, proposed construction in the | | | | national provider of commercial real estate appraisal |
| metropolitan area, proposed construction in the | | | | services including cost segregation studies, due |
| submarket, and likely trends for operating expenses | | | | diligence, insurance valuations, expert witness |
| are considered in developing a financial model. Similar | | | | testimony, feasibility studies, financial modeling, gift |
| financial model research is performed for operating | | | | tax valuations, highest and best use analyses, |
| businesses to gain insights into current and future | | | | casualty loss valuations and market studies. |
| trends. | | | | All commercial property types benefit from our |
| The financial model considers both historical data and | | | | appraisal services including department stores, |
| research regarding the current health and outlook for | | | | research and developments, lumber storages, fast |
| the market. The conclusion is summarized in a | | | | food restaurants, convenience stores, retail centers, |
| presentation of probable future cash flows. In some | | | | airplane hangars, lodgings, daycare centers, hotels, |
| financial models, multiple scenarios are prepared to | | | | truck stops, manufacturing/processing facilities, |
| address the possible impact of uncertain material | | | | greenhouses and auto dealers. |
| influences. Analysis of the cash flows often includes | | | | |