How Underwrite handles Mixed-Use.
Mixed-use combines residential rent, commercial rent and other income. Review both parts of the rent roll and their costs. The worked example illustrates this model. Shared assumptions and model limits are listed below.
The worked example is free on screen, with no sign-in. Core adds document exports.
What the model covers
The operating summary shows these measures for a Mixed-Use deal:
- Residential Units. Apartment / loft count from the residential portion.
- Avg Rent / Unit / Mo. Monthly rent per residential unit.
- Commercial SF. Retail / commercial square footage of the ground-floor or adjacent commercial space.
- Rent / SF / Yr. Annual rent per SF of commercial space.
- Cost / Unit. Purchase price allocated by unit count (mixed-use approximation; institutional underwriting often allocates by appraised value).
Checks for this property type
The validation guards use these tighter bands for Mixed-Use instead of the generic defaults:
- Property management % of EGI: 2-6%. Standard institutional band, weighted to the residential portion.
Stress scenarios
The desk offers these stress scenarios when Mixed-Use is the property type:
- Insurance / Tax Spike. Expense growth +200bps, property mgmt +50bps. Applies to mixed-use since the residential portion drives the operating profile.
- All four generic stress scenarios (Base, Recession, Rate Spike, Aggressive) are also available on Mixed-Use deals.
Example deal: Cayuga Commons (Illustrative Case)
The Mixed-Use pre-built example computes to the headline values below. Open it in the tool to edit any input and watch the model update, or open its investment committee memo.
Current model boundaries for this asset class
These Mixed-Use features are simplified or left out of the model, and stay with the analyst. The full list across all asset classes is at /methodology/beyond-phase-1.
- Vertical mixed-use (street-level retail under residential) uses the same aggregate rent schema as horizontal. In practice retail and residential components have very different growth, vacancy, and exit cap profiles.
- Condo-conversion potential for the residential component is not modeled.
- Shared amenity spaces and parking are folded into other-income.
- A tenant rent roll is modeled in whole-year lease terms only. A term the model cannot represent, such as a part year, keeps the deal unscored. Nothing is rounded. A tenant whose term stays unresolved can instead be scored as vacant, and that is labeled. Expense recoveries from the commercial tenants are not modeled until you include them.