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Free feasibility model for real estate developers

The Developer Feasibility Pack

Type your land price, build cost, and rents into one screen and see whether a ground-up deal pencils. The model runs the sources and uses, your yield-on-cost against the market cap rate, and the residual land value, so you know the most you can pay for the dirt.

Built for developers, merchant builders, and value-add buyers moving into ground-up. It runs in Excel or Google Sheets, with ChatGPT or Claude for the reasoning. No code.

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Who this is for

If a deal lives or dies on the gap between your yield-on-cost and the market cap rate, this is for you. The model runs the full feasibility and backs into the land bid so you stop guessing at the asking price.

Ground-up developers

You are pricing sites and need to know the spread and the land bid before you tie up the dirt.

Merchant builders

You build to sell. The profit margin on cost and the residual land value are the two numbers that decide the deal.

Value-add buyers going ground-up

You underwrite existing assets well; new construction is a different math. This makes the cost stack and the spread legible.

What is inside

A live feasibility model, the reasoning prompt that walks a deal end to end, and a worked ground-up example you can trace input by input.

Back into the land bid

See the residual land value the deal can support, so you bid the dirt off the math instead of guessing at the asking price.

Read the development spread

See your yield-on-cost against the market cap rate in basis points, so you know in one look whether the deal is worth building at all.

Sources, uses, and DSCR

See the full cost stack, the equity plug, and the permanent-loan DSCR walked end to end on a real-shaped deal.

Stress it on two variables

Read the 2-variable grid of exit cap against rent, so you see the band of outcomes instead of betting the deal on a single guess.

Calibrate cost and rent

Tune the build cost and rent assumptions to your real market and watch the spread and land bid recalc live, so the model speaks your numbers.

How to run it

Run the model in the tool you already use. The two no-code paths take about five minutes each. The dev-environment recipes are there if you live in a terminal, not because you need them.

ChatGPT

Custom GPT

No code

Claude

Project

No code

Claude Code

Skill

Dev env

Codex

AGENTS.md

Dev env

Your first prompt

Once the prompt is loaded and the model is open, paste a site and ask:

Run feasibility on this site:

[paste land price, hard cost per unit, unit count, achievable rents,
exit cap, market cap, and your target profit margin]

You get the development spread, the profit margin on cost, and the residual land value. The QUICK-START guide walks all five steps, including how to calibrate hard cost and rent so the model speaks your market.

Questions real estate teams ask

What is a developer feasibility model for ground-up CRE?

A developer feasibility model calculates whether a ground-up development deal pencils by running your land price, hard and soft construction costs, and stabilized rents through a sources-and-uses waterfall. The key output is the development spread, your yield-on-cost minus the market cap rate in basis points, and the residual land value, which is the most you can pay for the dirt and still hit your target margin.

How do you calculate residual land value for a development site?

Residual land value is calculated by working backward from the stabilized NOI the project will produce. Divide the NOI by your target yield-on-cost to get the maximum total development cost, then subtract your hard costs, soft costs, and carry. What is left is the amount of that total budget the land can absorb, the residual land value. This pack does the calculation live in Excel as you type your inputs.

What is development spread and why does it matter?

Development spread is the difference between your yield-on-cost and the market cap rate at which similar assets trade. A positive spread means your project creates value, you build at a cost that produces an income yield above what buyers will pay for finished product. A negative spread means you are building below replacement cost: the finished building is worth less than it cost to build.

Where AI changes the answer

AI walks a ground-up feasibility end to end — cost stack, stabilized NOI, yield-on-cost, market cap comparison, DSCR, and residual land value — showing the math at each step so a developer can stress any assumption and see the impact on margin without rebuilding the model from scratch.

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