Excel test coming up in industrial
I am interviewing at a company and I have an excel test coming up that is industrial. They build data centers and warehouses across the country. I have never modeled an industrial deal before. 

Is there anything I should focus on. I only have multifamily experience so I'm not sure how net leases work. Any tips would be great.
[{"id": "firdrhh", "text": "Net leases are easy to model. I would check out UDEMY or Adventures in CRE to brush up on your modeling.", "replies": [{"id": "firjzky", "text": "I'm assuming all you do is add back expense recovery? I know that is a term Spencer at Adv. in CRE uses.", "replies": [{"id": "firm23r", "text": "All depends on tenancy. Data Centers are probably single tenant, so yes. Warehouses can be multi tenanted, so it would get a little more complicated due to lease rolls, if building isnt at 100% occupancy.", "replies": [{"id": "firpple", "text": "It sounded like there will be multiple tenants based on what they told me.", "replies": [{"id": "firqh4r", "text": "Then your modeling needs to be a little more advanced (probably need to know ARGUS as well). Check out some of the proforma modeling courses on udemy", "replies": [{"id": "firvvoh", "text": "I can model multiple tenants. I\u2019m already enrolled in Justin\u2019s Break into CRE. \n\nI\u2019m also an multi family acquisitions analyst already but only work in excel. Only been there for six months and 8 months out of school. I\u2019ve taken a Argus class here and there but don\u2019t know how to use it.", "replies": [{"id": "fisa1yh", "text": "Didn\u2019t mean anything negative by \u201cadvanced\u201d, meant more fine tuned toward industrial. His break into cre courses are great. If your excel skills are on point, I\u2019m sure they\u2019ll be willing to work with you improving your Argus and industrial skills.", "replies": [{"id": "fisgpzo", "text": "Break into CRE doesn\u2019t have any industrial courses. I\u2019ve never used Argus and taken one class my sneaking into a usc lecture on it. \n\nMy excel skills are good but there\u2019s tons of analysts who are better. Being an acq analyst guy at a smallish operator with a huge robust model basically means I input financials and assumptions into excel and use software to customize the rent roll. Every deal we underwrite is the same price range and more or less the same market. It\u2019s something I could\u2019ve done as a high schooler. So no offense taken at all. I can still build pretty much any ground up or acq multifamily model with a waterfall but that\u2019s it. \n\nI think they are expecting me to know a lot but in reality I\u2019m basically a glorified data entry guy who knows west coast real estate markets well.", "replies": [{"id": "fitkqzj", "text": "While the break into CRE courses are industrial specific, the same theories apply. I'd start there and have read good things about adventures in cre. I think the biggest key will be getting your excel skills on point. To go back, yes you want to model expenses, and the reimbursements from the triple net are Income. It would be rent + reimbursement revenue - expenses = NOI.", "replies": [{"id": "fk85pvh", "text": "Also check out Top Shelf Models.  \nHttp://tsmfinancialmodels.com\n\nThey have excel template models for a bunch of property types, including industrial.  It will give you an idea of how the pere shops model the investments so you are more prepared.", "replies": [], "depth": 10}], "depth": 9}], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "firfmp9", "text": "I'd definitely recommend the sites already recommended. But if you've got multifamily experience, then net leases should be easy (relatively speaking). Typically it's the lease net of expenses and taxes. So you just model:\n\nIncome\nLess vacancy\nNOI\nReserves\nDebt\nWaterfall", "replies": [{"id": "firjzg6", "text": "Do you model expenses and then add back expense recovery?", "replies": [{"id": "firlilv", "text": "I guess you'd probably want to model the expenses out for budgeting purposes. Not sure exactly where the recovery would go. Maybe before the waterfall so you show a return of capital before distribution.\n\nAlso depends if the lease is triple net or not.", "replies": [{"id": "firpod3", "text": "What do you mean by showing return on capital? Are you talking about adding up total contributions and distributions?\n\n I don't think they will ask for a waterfall. I assume it will be a dcf with a 5-10 year hold. The only thing I am worried about is modeling the tenants and operating expenses.\n\nHow would you model and single and double net lease?", "replies": [{"id": "firtxbi", "text": "I meant that that spot in the proforma made the most sense to show your expense recovery. You'll still be paying things like taxes (because you're the owner) so then you show the money you spent coming back to you after you've paid the debt. Or maybe you can treat it like other income and include after vacancy? Id do some googling. \n\nAs far as modeling the lease...The terms of the lease will have to tell you that. Most likely they'll give you a bunch of parameters. I.e. maybe the only thing that is net out is taxes. Then you either don't include taxes as an expense (which sounds either wrong or overly simplistic) or you do and show your recovery.", "replies": [{"id": "firw49t", "text": "I\u2019d assume they will just give me OPEX/SF as opposed to individual assumptions. \n\nWill looking at office models help out?", "replies": [{"id": "firxqoy", "text": "I think so? I mean it's commercial property. I'd have to imagine that itd at least be helpful to learn the structure of the pro forma. I'm building office space into an apartment building that will house the property management. It's gonna be triple net. But we're basically underwriting the income stream separate from the residential component. Not too focused on opex because the management will handle that during the course of business. But it's a really crazy affordable housing deal", "replies": [{"id": "fis0dpn", "text": "I\u2019ve never down anything office, retail or industrial related. I work as a multifamily acquisitions analyst and never been exposed to anything else. So I have a pretty narrow mindset. \n\nI\u2019m just curious how\u2019d you model out a N/NN/NNN lease if given that. \n\nI\u2019d assume the rest of the structure is similar to multifamily?", "replies": [{"id": "fis14p5", "text": "Yeah it's really no different except you have that NNN bs and the rents are probably on an annual per sq ft basis rather than monthly/annual", "replies": [], "depth": 9}], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}]