How it works
Write the cash list first. Then decide what the page is measuring.
- Abstract each offer into money lines.
- Normalize lease type and dates.
- Discount both streams at one rate.
- Show a flip case.
- Write the recommendation in one page.
Formula in words. Broker compare = normalized stacks + one rate + one flip case + a written pick.
| Input | Meaning |
|---|---|
| LOI or proposal | The raw offer |
| Extra history | CAM, tax, insurance |
| Credits | Free rent and TI |
| Client rate | Cost of capital or agreed rate |
Worked example
Here is a teaching sample. It is not customer data and not a result from a live client.
Lease A start rent$45,500
Lease B start rent$42,315
Discount rate8%
Sample NPV A$390,494
| Metric | Lease A | Lease B |
|---|---|---|
| Start rent | $45,500 | $42,315 |
| Year-1 extras | $8,800 | $9,416 |
| Year-1 credit | $19,000 | $10,450 |
| Sample NPV | $390,494 | $379,145 |
| Year | Rent | Extras | Credit | Cash out | Value today |
|---|---|---|---|---|---|
| Year 1 | $45,500 | $8,800 | $19,000 | $35,300 | $32,685 |
| Year 2 | $46,774 | $9,064 | $0 | $55,838 | $47,872 |
| Year 3 | $48,084 | $9,336 | $0 | $57,420 | $45,582 |
| Year 4 | $49,430 | $9,616 | $0 | $59,046 | $43,401 |
| Year 5 | $50,814 | $9,904 | $0 | $60,718 | $41,324 |
| Year 6 | $52,338 | $10,201 | $0 | $62,539 | $39,410 |
| Year 7 | $53,908 | $10,507 | $0 | $64,415 | $37,586 |
| Year 8 | $55,525 | $10,822 | $0 | $66,347 | $35,845 |
| Year 9 | $57,191 | $11,147 | $0 | $68,338 | $34,186 |
| Year 10 | $58,907 | $11,481 | $0 | $70,388 | $32,603 |
| Sample NPV | — | — | — | — | $390,494 |
How to read the sample
Sample NPV for Broker-compare sample is about $390,494. A second path lands near $379,145. That gap is a talking point, not a promise.
Year notes for Broker-compare sample
- Year 1 of Broker-compare sample has rent of $45,500.
- Shared building cost is $8,800.
- A credit of $19,000 lowers the cash you pay that year.
- Cash out this year is about $35,300. The credit is the talking point in year one.
- Later cash gets a shrink for time. At 8 percent, year 1 is worth about $32,685 today.
- Next, year 2 rent is $46,774.
- CAM, which is a shared building cost, is $9,064.
- There is no credit in this year.
- You pay about $55,838 this year after extras and credits. Year two is the first clean bill.
- Time shrinks later cash. At 8 percent, year 2 is worth about $47,872 today.
- Then year 3 rent is $48,084.
- Extras for the building come to $9,336.
- Credits skip this year.
- The net cash this year is about $57,420. The bump starts to show the true rent.
- Waiting has a price. At 8 percent, year 3 is worth about $45,582 today.
- After that, year 4 rent is $49,430.
- The shared building cost this time is $9,616.
- No extra credit shows up this year.
- Cash out this year is about $59,046. Later years are where sticker math fails.
- Later cash gets a shrink for time. At 8 percent, year 4 is worth about $43,401 today.
- In year 5 of Broker-compare sample, rent is $50,814.
- Shared building cost is $9,904.
- There is no credit in this year.
- You pay about $60,718 this year after extras and credits. The last year is still in the client total.
- Time shrinks later cash. At 8 percent, year 5 is worth about $41,324 today.
- Year 6 of Broker-compare sample has rent of $52,338.
- CAM, which is a shared building cost, is $10,201.
- Credits skip this year.
- The net cash this year is about $62,539. Keep this later year in the sum for the sample.
- Waiting has a price. At 8 percent, year 6 is worth about $39,410 today.
- Next, year 7 rent is $53,908.
- Extras for the building come to $10,507.
- No extra credit shows up this year.
- Cash out this year is about $64,415. The row still belongs in the sum for the long path.
- Later cash gets a shrink for time. At 8 percent, year 7 is worth about $37,586 today.
- Then year 8 rent is $55,525.
- The shared building cost this time is $10,822.
- There is no credit in this year.
- You pay about $66,347 this year after extras and credits. Keep this later year in the sum for the long path.
- Time shrinks later cash. At 8 percent, year 8 is worth about $35,845 today.
- After that, year 9 rent is $57,191.
- Shared building cost is $11,147.
- Credits skip this year.
- The net cash this year is about $68,338. The row still belongs in the sum for the long path.
- Waiting has a price. At 8 percent, year 9 is worth about $34,186 today.
- In year 10 of Broker-compare sample, rent is $58,907.
- CAM, which is a shared building cost, is $11,481.
- No extra credit shows up this year.
- Cash out this year is about $70,388. Keep this later year in the sum for the long path.
- Later cash gets a shrink for time. At 8 percent, year 10 is worth about $32,603 today.
Add those year values. The sample NPV for Broker-compare sample is about $390,494. This is a teaching sample, not a client result.
Trusted sources
These are public references. They are not endorsements and not client results.