One of the most critical stages in real estate development is determining whether a project is financially viable. With Zenerate’s Financial Settings feature, architects, contractors, and real estate developers can now streamline feasibility studies using three powerful financial setting options.
These built-in financial calculators help users quickly assess return potential, costs, and profit margins—before breaking ground.
3 Financial Calculation Methods
Zenerate offers three proven financial analysis methods to help you evaluate whether your design concept makes economic sense:
Net Operating Income (NOI) & Construction Cost,Yield on Cost & Profit Margin,Residual Value
Each method guides you through key project assumptions and inputs via four main tabs. Let’s walk through each.
Net Operating Income (NOI)
The NOI tab is essential for estimating the total net operating income from your project.
Residential Units
For townhouse and multifamily housing projects, you can input expected rents either:
Per unit, or,Per Gross Floor Area (GFA)
Don’t forget to include:
Vacancy rate,Operating expense percentage (as a portion of residential income)
Commercial Units
For office, retail, facility, storage and amenity units, users can:
Measure expected income per month per Gross Floor Area or Total Amount,Enter expected vacancy rates and efficiency ratios
Other Income or Expenses
Here, you can list the total amount of any additional income or expenses, such as signage income, rooftop leases, or common-area charges—on a per-year basis.
Construction Cost
Understanding hard construction costs is vital for the project success. Zenerate breaks this down by use type.
Residential
Estimate costs per unit or per GFA for all residential unit types found in any multifamily housing types.
Commercial
Input the expected construction cost per square foot for:
Retail,Office,Amenities,Storage,Facility spaces
Parking Structures
If your site includes structured parking:
Input construction rates per stall or per GFA for podium or basement garages
Site Costs
Don’t overlook site preparation and surface parking:
Site works (cost per square foot),Surface parking (cost per stall)
Others
Enter any additional construction-related expenses not covered above by specifying their total cost amount.
Project Cost
This section builds on the construction cost inputs by including similar cost categories, with the addition of key financial components such as acquisition, soft costs, and financing.
Acquisition Cost
Enter the land purchase cost as:
Total amount,Per lot area
Soft Cost
Architects and developers can estimate soft costs:
Per Unit,Per GFA,As a % of hard construction costs
Include fees for design, permits, legal, and consulting.
Financing Costs
Estimate financing either:
Per unit,As a total dollar amount,As a % of total cost
This helps model interest, origination fees, and more.
Return Metrics
The final tab allows you to define your target return benchmarks. By inputting key performance indicators like cap rate, yield on cost, and profit margin, you can quickly evaluate whether your project meets financial expectations.
Cap Rate: Annual return based on net income and market value,Yield on Cost: Projected return based on development cost,Profit Margin: Profit percentage relative to total cost,Cost of Sale: Broker fees, marketing, and other sales-related expenses
These return metrics allow you to compare multiple design schemes side-by-side, making it easier to select the most financially sound option.
View Financial Results Instantly
Once you’ve selected a calculation method and entered the relevant data, hit Apply. Zenerate will generate dynamic financial projections displayed on each solution card in your workspace.
This allows our users to:
Instantly compare the financial performance of multiple design options ,Evaluate site feasibility during the design process,Reduce back-and-forth with spreadsheets and consultants
Explore What Zenerate Can Do
Ready to accelerate your feasibility studies? Book a demo with us today and get a free trial to see how fast site planning can be done.