How Underwrite handles Office.
Office is the asset class with the largest post-COVID question mark. The engine handles it as a rentable-SF asset with elevated vacancy and a higher exit cap to reflect the risk profile. The WFH Shift stress scenario stress-tests the deal against continued remote-work migration. Operating Snapshot surfaces Rentable SF, Rent / SF / Yr, Vacancy, Cost / SF, and Y1 NOI / SF.
What the engine surfaces natively
On any Officedeal, the in-tool Operating Snapshot replaces generic schema labels with the asset class's native vocabulary:
- Rentable SF. Total leasable office square footage.
- Rent / SF / Yr. Annual rent per SF. The engine treats this as a single figure; in practice office leases vary between full-service-gross and triple-net, with stops and escalations that change net effective rent materially.
- Vacancy. Stabilized vacancy. Office often carries 10-20% in non-trophy markets post-COVID.
- Cost / SF. Purchase price divided by SF. Wide range: $200/SF for Class B suburban, $1,000+/SF for trophy CBD.
- Y1 NOI / SF. NOI per SF; used to compare across deals at different scales.
Property-type-aware validation bands
Validation guards in lib/engine/validation.ts use these tighter bands for Office instead of the generic defaults:
- Property management % of EGI: 2-6%. Standard institutional band. Most office buildings have an on-site property manager and active leasing oversight.
Asset-class stress scenarios
The ScenarioBar surfaces these stress overlays when Office is the current property type:
- Office WFH Shift. Vacancy +15pp, rent growth to 0, exit cap +125bps. Models continued remote-work migration and lower trailing demand for office space.
- All four generic stress scenarios (Base, Recession, Rate Spike, Aggressive) are also available on Office deals.
Example deal: Tower 18, Class B Office
The Office pre-built example computes to the headline values below. Click into the tool to edit any input and watch the engine recompute live, or open the IC memo to see the full deterministic output.
Current model boundaries for this asset class
These are the Office-specific institutional features Underwrite deliberately routes to analyst review today. The full list across all asset classes is at /methodology/beyond-phase-1.
- Tenant Improvements (TIs) and Leasing Commissions (LCs) are not modeled as a separate cash-flow line.
- Free rent (rent abatement) on new leases is not modeled.
- Full-Service Gross vs Net structure is collapsed; the engine treats rent as a single figure.
- Lease expiration ladder is not modeled. Engine assumes flat occupancy across the hold.
- Expansion options and renewal probabilities are not modeled.