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Task guide

Build and verify a pro forma analysis

Show buyers the upside: current and stabilized rent, income, expenses, and NOI side by side in one clean comparison.

20 to 45 minutesFor brokers and analysts presenting a value-add or stabilized caseAdvancedLast verified October 5, 2026

Outcome

Your In-Place and Pro Forma columns each tie to your underwriting and clearly show the NOI lift.

Navigation path

Document wizard > Rent Roll > Pro Forma > Income & Expenses > Valuation

Access

Full Financials with a Pro Forma rent-roll model

On this page

Before you start

Data, sources, and access to prepare

  • Full Financials selected
  • A Unit-by-Unit Pro Forma or Unit-Mix Pro Forma rent-roll type
  • Current and stabilized assumptions

Understand the Pro Forma comparison

In-place to pro forma

The two columns are separate snapshots, not Year 0 and Year 1.

  • In-Place RentIn-Place NOI
  • Pro Forma RentPro Forma NOI
  • In-Place NOIPro Forma Analysis
  • Pro Forma NOIPro Forma Analysis

Rent Roll

In-Place
Current rent and reimbursement
Pro Forma
Stabilized rent and reimbursement

Additional Income

In-Place
Current annual amount
Pro Forma
Stabilized annual amount

Expenses

In-Place
Current annual amount
Pro Forma
Stabilized annual amount

Valuation

In-Place
Current EGI, expenses, NOI
Pro Forma
Stabilized EGI, expenses, NOI

Growth schedules

In-Place
Not shown
Pro Forma
Not shown

Reconcile the summary math

  • In-Place deducts the rent and reimbursements of vacant spaces as vacancy loss.
  • Pro Forma counts every vacant space as leased at its Pro Forma rent and reimbursement, with no vacancy deduction.
  • Each side includes its own reimbursement and additional-income values.
  • Each side subtracts its own total operating expenses.
  • NOI equals effective gross income less operating expenses for that column.
  • Pro Forma is not a time-based projection and does not apply annual growth or custom escalation schedules.

Pro Forma has no vacancy or credit-loss input

The General Vacancy Factor % and Lease-Up Scenario appear only in Multi-Year Cash Flow, so stabilized EGI carries 0% vacancy and credit loss. To show a stabilized vacancy allowance, build it into the Pro Forma rents you enter and say so in a Valuation Summary footnote.

Build both sides of the analysis

Pro-forma steps

  1. 1

    Choose Pro Forma

    Rent Roll, projection selector

    Select Pro Forma.

    Expected result: The projection choice is highlighted.

    If this step does not work

    If annual growth is required instead, choose Multi-Year Cash Flow.

  2. 2

    Choose the row layout

    Rent Roll, layout selector

    Select Unit-by-Unit or Unit Mix.

    Expected result: Current and pro-forma input columns appear in the selected layout.

    If this step does not work

    Choose the layout that matches individual records or grouped source data.

  3. 3

    Complete both rent cases

    Rent Roll rows and detail drawer

    Enter current and pro-forma rent and reimbursement for every applicable row.

    Expected result: Each row has a complete two-column comparison.

    If this step does not work

    Do not leave a pro-forma field blank merely because the current value is unchanged. Enter the stabilized value.

  4. 4

    Complete both statement cases

    Income & Expenses

    Enter In-Place and Pro Forma values for every additional-income and expense row.

    Expected result: Both column totals reconcile to the underwriting.

    If this step does not work

    Check for explicit zero values and omitted rows separately.

  5. 5

    Review the NOI table

    Valuation, Pro Forma Analysis

    Compare gross rent, reimbursements, other income, EGI, expenses, and NOI for both columns.

    Expected result: Each subtotal can be traced to a saved input.

    If this step does not work

    Return to the source row for the first subtotal that differs.

    Valuation workspace showing an in-place and pro forma financial comparison.
    Compare verified in-place operations with the stabilized pro forma and explain every material change between the columns.
  6. 6

    Set optional financing and reserves

    Valuation, Assumptions

    Enter financing and reserve inputs when you want to show them.

    Expected result: Debt service and reserves appear below NOI.

    If this step does not work

    Reserves equal rate x total SF, units, keys, or pads.

  7. 7

    Verify the document page

    Review & Customize

    Confirm the generated analysis is labeled and presented as a pro-forma comparison.

    Expected result: The final page matches the two wizard columns.

    If this step does not work

    Return to the wizard if the output uses an unexpected model or value.

Avoid common pro-forma mistakes

Growth or exit-year controls are missing

Likely cause: Pro Forma is a two-snapshot comparison, not Multi-Year Cash Flow.

  1. Use current and stabilized columns.
  2. Change the rent-roll projection only if a yearly forecast is required.
An explicit zero becomes unclear

Likely cause: A blank field and a zero can carry different underwriting meaning.

  1. Enter zero deliberately where the modeled amount is zero.
  2. Review the resulting summary before leaving.
Pro-forma NOI is higher than expected

Likely cause: Pro Forma counts vacant spaces as fully leased and deducts no general vacancy or credit loss. Rent, reimbursement, or expense entries may also differ from your underwriting.

  1. Check the Pro Forma rent on every vacancy row.
  2. Build any stabilized vacancy allowance into the Pro Forma rents.
  3. Reconcile reimbursements, additional income, and expenses next.

Comparison ready

  • Every row has a current and a stabilized value
  • Both EGI totals tie out
  • Both expense totals tie out
  • Both NOI values tie out
  • Any stabilized vacancy allowance is built into Pro Forma rents and footnoted

Your next OM, done this afternoon

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