Estimate for the operation of shopping centers program. Construction of commercial real estate

The project is the construction of an object (presumably a shopping and entertainment center). The object is located in the city of Mytishchi, Moscow region at the address: st. Letnaya, 26. The approximate date of commissioning of the facility is 2019.

Object coverage areas

When developing the concept of building a business center, it is necessary to determine the boundaries of the service area surrounding the site.

Conventionally, the area around the object can be divided into three zones (depending on the proximity of the location):

• 1st encirclement ring: limited by Yubileynaya, Mira streets, the Yauza River.
• 2nd encirclement ring: covers most of the city, with the exception of remote areas - Stroitel, Chelyuskinskaya, Stroyplastmass district, Vostochnaya Perlovka and Druzhba.
• 3rd encirclement ring: covers the entire city of Mytishchi, including the areas of Stroitel, Chelyuskinskaya, Stroyplastmass, Vostochnaya Perlovka and Druzhba.

Internal and external factors of project success

External factors are beyond the control of the investor, however, their influence on the subsequent development of the project is of fundamental importance in the implementation of the business center construction project.

Comparison of external and internal development factors is presented in the table below.

Based on the analysis, we can conclude that when deciding on the construction of a business center, several parameters must be taken into account:

• Prospects for the economic, social and demographic development of the region.
• The level of competition in the area where the facility is located.
• Socio-demographic features of the population living in the area.
• features of the object itself.
• Investment indicators of the project implementation.

It should be noted that the cost of building business centers in St. Petersburg averages 450 million rubles with an area of ​​40,000 sq. m. However, this figure differs slightly from that in Moscow.

It should be noted that the cost of building business centers in Moscow is about 600 million rubles with an area of ​​more than 40,000 square meters. m.

SWOT analysis of the object

Below is the final table of the SWOT analysis of the facility proposed for construction.

After analyzing the strengths and weaknesses of the object, its development and threats, it is possible to consider the possibility of implementing two different options for using the area:

• Shopping center.
• Shopping and entertainment center.

Shopping center

In this case, you can focus on the shopping gallery. The large size of the trading area will increase the variety of goods on offer. Rental rates for retail space are much higher than for entertainment space. In this case, the coverage area of ​​the shopping center will be only the first ring of the environment.

This business plan for the construction of a business center is the most optimal subject to the construction of a two-story facility.

Shopping and entertainment center

In the second case, you can focus on the entertainment component. The main advantage of this proposal is the fact that there is an acute shortage of leisure places for children in the city market. The presence of an entertainment zone increases the time spent by buyers on the territory of the facility. In the new malls, the ratio of retail and entertainment space is 50% to 50%.

On the ground floor it is proposed to place a grocery supermarket.

With a large number of entertainment operators, the shopping and entertainment center will be able to attract visitors to the first and partially second ring of the city's surroundings, since there are not enough entertainment facilities in the city. At the same time, it should be taken into account that rental rates for this type of service are lower than for retail space, which will ultimately lead to an increase in the payback period of the project.

Foreign experience suggests that the most optimal implementation of the project will be the creation of a shopping and entertainment complex, since this option reduces commercial risks.

The planned business center belongs to class A. It is the highest among those that can be assigned. Class A rating indicates the prestige of all the premises of the building, the presence of modern life support systems and the work of the center itself.

The cost of building a class A business center on a specific example is presented below. We must not forget that the construction of a shopping and entertainment center in another city may have completely different financial investments in terms of volume.

Compilation of project cash flows

Presumably, the mall will have the following parameters when obtaining a building permit:

• The total area of ​​the shopping center is 9672 sq. m.
• Including 1st floor - 4847 sq. m.
• Including 2nd floor - 4825 sq. m.
• The occupancy of the premises in the 1st year is 70%.
• The occupancy of the premises in subsequent years is 95%.
• Risk of non-payment - 0%.
• Income growth per year - 5%.

Since the lease agreement stipulates the amount of a penalty for delay over 30 days, the risks of non-payments during the construction of a business center are equated to zero. The annual increase in rental prices will be 5%.

The table below shows this more clearly.

Investments in the construction of the construction of a business center (rub.)

The most important point is the study of issues of financing capital investments. For this purpose, both own and borrowed funds of the company can be used. Below are the data on the financing of the construction project in more detail.

Project financing:

• Investments in total - 13439642 dollars.
• Including the 1st year - 10939642 dollars.
• Including the 2nd year - $2,500,000
• Borrowed capital in total - 13439642 dollars, including 1st year: 10939642 dollars, 2nd year: 2500000 dollars.
• The loan repayment period is 10 years.
• The interest rate on the loan is 18%.

In the process of studying the financial results of the project, an important point is the study of the amount and amount of the tax burden in the company according to the business plan.

The results of the planned tax deductions for the project are presented below.

Taxes paid during project operation:

• For property - 2.2%.
• For profit - 20%.
• VAT - 18%.

To build a cash flow, we need to determine the approximate amount of revenue from the lease of space, for which we need to zoning the area of ​​the mall. Zoning elements are presented in the table below.

Zoning

The calculation of income from the rental of premises for the planned business center is a central point, as it is associated with its efficiency. There are various predictive options for obtaining such income: optimistic, average and pessimistic. The table below shows the characteristics of each option more clearly.

The first table presents a pessimistic forecast for the income generation option.

Rental income calculations. Rental rates - pessimistic forecast

These tables allow us to conclude that as a result of the implementation of the project, the pessimistic amount of income received from the lease of space in the shopping and entertainment center will be $3,909,468.

The table below shows the data on the calculation of income from renting the premises of the shopping center with an average variant.

Rental income calculations. Rental rates - average

These tables allow us to conclude that as a result of the implementation of the project, the average amount of income received from the delivery of space in the shopping and entertainment center will be $4,429,399.

It is also necessary to predict an optimistic forecast for the possible receipt of income of the object from the lease of space, which is presented in the table below.

Rental income calculations. Rental rates - optimistic forecast

These tables allow us to conclude that as a result of the implementation of the project, the optimistic amount of income received from the lease of space in the shopping and entertainment center will be $4,776,385.

Calculate the cost of borrowed funds and their repayment schedule in the table below.

Note: In Month 3, the monthly payment will include a two-year grace period and an interest capitalization of $5,143,445.

The data in the table indicate that the monthly payment for the project will be $3,214,579 per month.

other expenses

Consider and calculate all possible operating costs in the construction of a business center:

• The first two years of protection work will cover half of the permanent volume.
• The calculation of cleaning services includes the cleaning of all areas and territories.
• Wages paid in full including all taxes and VAT.
• Annual salary increase of 5% per year.
• All operating expenses are passed on to tenants (except Year 1 and half of Year 2 expenses).

To compile the cash flow, we calculated the following data:

• Approximate average rental income for 10 years of project implementation, provided that in the first year the leased area is 70%, and in subsequent years - 95%.
• Property depreciation will be 3.33% per year.

Calculations within the framework of financing activities include excess interest under tax legislation, since the format before and after financing will not be compiled.

Since construction is accepted “by stages of work”, and the cash flow is formed starting from the first year, which is counted from the moment when the project generates the first ruble of income, the enterprise loses the right to a VAT refund in the first year upon completion of construction.

Since the balance of the project is a positive value when the facility reaches 100% capacity, other and extraordinary expenses were not taken into account in the calculations.

Based on the available data, it is possible to display the planned cash flows generated by the project.

The table below shows the operating costs of the project.

Operating expenses

The presented table shows that the amount of operating expenses in the first year will be 271,707 dollars, then it increases over the years and reaches the amount of 740,157 dollars in the 10th year.

In the subsequent analysis of the project's effectiveness, the dynamics of project revenues during the first 10 years will be considered in the table below.

Project income

These tables allow us to conclude that the amount of income from the project in the first year will be $2,717,987, then the income will increase, by the 10th year they will amount to $39,702,947.

When studying a project, it is important to calculate depreciation charges, which are presented in the table below.

Project depreciation

As can be seen from the table, the amount of depreciation in the third year will be $262,153, and in the last, 10th year, $227,582. The total amount of depreciation charges for all years of project implementation will be $1,956,147.

The table below shows the cash flow for the project.

Cash flow

The table shows that the total cash flow for the project will be $1,300,415.

Estimating the discount rate

It is used to translate future income streams into a single value at the moment. The discount rate (r) will be calculated cumulatively using the formula:

α is the average inflation rate for the period.

MRR (Minimum Risk of Return) - the minimum real rate of risk associated with the operation of the project.

RI (Investment Risk) - the level of the average required return (risk) by the project participants.

The minimum real risk rate MRR for this case will be equal to the cost of borrowed funds, namely 18%, that is, the bank loan rate.

In accordance with the investment agreement, the average required return RI by the project participants is set at 2%.

So the discount rate will be:

r = (0.13+0.18*1.02)*100% = 30%

findings

When drawing up a business plan for the construction of a business center, the project was considered, and optimistic conclusions were made.

In the next three years, the Mytishchi region will experience moderate economic growth, but the average indicators for the region will lag behind the average indicators for the Moscow region. Mechanical engineering, instrument making, construction industry will remain the leading sectors.

By the end of 2018, it is planned to increase the growth rate of retail trade turnover by 40% and increase the annual volume of household services by 35%. The growth of trade turnover will be ensured by the growth of the middle class and its incomes.

Space that meets international standards is in short supply, the demand for high-quality retail space exceeds supply. This will lead to an increase in the quality of the creation and management of the mall.

The main sources of demand today are clothing stores. They account for about 50% of the space in shopping centers. The level of vacant premises in 2018 will be 10-15%. The expected increase in the volume of retail real estate will be about 75,000 sq. m. m. Currently, the average rental rate for commercial premises in the city is about 405 $ / sq. m. m. per year (including VAT and operating expenses).

In the area of ​​the first ring of encirclement there are a large number of objects that compete in both the food and industrial sectors.

The cash flow calculation took into account the average rental rate, the availability of premises at the level of 5%, as well as all operating expenses and loan payments. The cash flow for the project turned out to be positive, but still not large enough.

The discount rate, which includes the average inflation rate, the risk generated by the project, and the average required return, was 30%.

Thus, the presented project can be accepted for consideration, as the calculations show its profitability and efficiency.

Estimating during construction work is mandatory, since almost every project has a budget that needs to be agreed. In the article, we will talk about the basic principles for developing construction estimates and how the Business.Ru service will help in drawing up estimates.

What you will learn about:

Basic principles of budgeting

Any estimate is made to have a plan for the implementation of a specific project, but also solves other problems. For example, budgeting for construction and other repair work is necessary to:

• separate the money needed for various materials, procedures and works;
• understand and tell the customer how much construction will cost;
• manage cash flows evenly and correctly, in accordance with time and requirements;
• check the financial feasibility of a particular design.

Estimated calculation during construction shows the cost of materials and work that are necessary for each of the processes separately.

Traditionally, the estimate is an annex to the contract for the provision of construction services.

The functionality of budgeting is one of the novelties of the Business.Ru service. This is useful for entrepreneurs and users of the system who are professionally engaged in construction or finishing work. Also, the ability to draw up construction estimates will simplify communication with contractors for store owners who delve into the process of repairing their facilities.

The principles of budgeting are spelled out in a special guide "Methodology for determining the cost of construction products on the territory of the Russian Federation" MDS 81-35-2004.

According to him, there are several types of estimates. Basically, the document determines the estimates when working with government orders and official bodies.

Types of construction estimates

MDS 81-35-2004 distinguishes the following types of construction estimates:

• local estimates (primary documents for the construction of large facilities and structures: buildings, roads, etc. at the base price level and with a forecast);
• object estimates (documents with figures from local estimates compiled with current year prices);
• consolidated estimates (created on the basis of previous documents, as well as on the basis of the estimated costs for the functioning of the administrative apparatus). They determine the final limit of funds that will be required for the construction of facilities.

Important! Guidelines are necessary for professional estimators for large government orders or construction firms. When compiling such estimates, they usually use reference books with prices for the year 2000, and then change them using a coefficient.

If we are talking about small companies when working with private companies or individuals, then a simpler version of the estimate is drawn up. The type of such a document differs in the areas of construction: a general estimate for construction work, as well as an estimate for finishing, electrical installation, design, plumbing, roofing, installation and other types of work.

An estimate for construction work is necessary if a global project is ahead: from the construction of a new building to the addition of a new building.

A sample estimate for construction work differs from other estimates in a large number of positions. For example, it may contain not only a list of installation, but also dismantling works.

A sample estimate for construction work looks like this:

A sample estimate for construction work can be compiled independently in an Excel spreadsheet, or you can use special services for making estimates. For example, this functionality is available in the Business.Ru cloud accounting system.

Based on the results of work in the service, the finished estimate is also uploaded to Excel, where it can be further corrected.

Electrical work is the whole range of repair work related to electrical wiring. These include complete and partial rewiring, rewiring in a new building, and even the installation of an electrical panel, sockets, and lights.

The peculiarity of such a document is that the basis of the estimate is a list of works with a cost. You can make an estimate for electrical work using the Business.Ru service.

An example of an estimate for electrical work:

After the contract between the contractor and the customer, an electrical store is selected where the purchase will be made (or the purchase of equipment is carried out by the client himself through the online store).

Design work is the first stage in the construction of a building. When designing a structure, the estimate takes into account the remuneration of specialists. Usually, estimates for design work are compiled according to special reference books, where wages and coefficients are calculated. Such a document has a small number of columns.

An example of an estimate for design work:

Estimates for repair work can be very diverse. It includes sections related to decoration or minor repairs.

An example of an estimate for repair work to level the walls in a room where radiators have already been installed:

Plumbing work is a group of works related to the installation and replacement of water and sewer pipes, as well as the installation and dismantling of washbasins, toilet bowls, faucets, radiators, etc.

Small private companies and individual entrepreneurs make estimates for plumbing work without taking into account methodological recommendations for wages.

A sample estimate for plumbing work is presented below:

As in the case of a general estimate for construction work, an estimate for roofing work usually includes not only installation, but also dismantling.

The picture shows a sample estimate for roofing work in an administrative building:

Welding work with a separate estimate is usually compiled only by professional estimators in large construction companies, taking into account methodological recommendations.

However, if minor welding work is performed, then the estimate for welding work can be performed in simpler programs for preparing documents. For example, in the cloud service "Business.Ru".

A sample fragment of an estimate for welding work:

If work is carried out with excavation of the soil or, conversely, its backfilling (in pits), such work is called earthwork.

The estimate for earthworks usually includes the cost of the work itself (salary to workers and the foreman), as well as consumables: shovels, bags, etc.

This is how a fragment of a sample estimate for earthworks, made according to methodological recommendations, looks like:

Dismantling work is a set of works related to the destruction of a building or part of it (for example, walls, windows, doors, etc.).

Typically, in such a document, in addition to the cost of dismantling, the fee for lowering garbage from the floor, collecting and removing garbage to a landfill is indicated.

Sample estimate for demolition works:

Installation work - a set of works related to the installation of something. The estimate for installation work includes the calculation of the price of equipment, as well as the cost of its installation.

In the Business.Ru program, you can create a similar estimate that will help you sell a set of goods for the installation of technically complex products. For example, when implementing "smart home" systems or an electronic barrier.

By the way, a sample estimate for the installation work of the barrier, which the store could print out for the client, is presented below:

Commissioning - a set of works after the installation of equipment: verification and adjustment of all processes. Usually, estimates during commissioning are made in large construction companies, while taking into account the codes and positions of the standards specified in special reference books.

Sample estimate for commissioning:

Finishing work is the final stage of repair. For example, wallpapering, laying laminate, installing doors, etc.

A sample estimate for the finishing work of one of the office rooms is presented below. It includes finishing the ceiling, walls and floor.

Estimate for work and materials

An estimate for work and materials is a simplified type of estimate that is used for minor repairs. For example, if your store just needs to paint the walls, the sample labor and materials quote will only include the cost of paint and refinishing.

Estimate for survey work

Survey work is a list of works necessary to explore the construction site. The survey estimate includes both economic and technical work.

Economic calculations include studies that justify the benefits of building a building in this particular place. Technical is a complex of cases in the field of geology, geodesy, which are also carried out before construction.

The sample estimates for survey work mainly include the cost of wages, as well as the cost of transporting specialists to the site of the proposed construction (gasoline, car rental, etc.).

The concept of estimated cost in construction

The definition of the estimated cost is used not only by estimators, but also by all foremen who make estimates without taking into account standards. In the most general view, the estimated cost is the amount of money intended for construction. It represents the final amount on which the contractor and the customer rely to determine the amount of financing.

When deriving the estimated cost, prices for construction goods, equipment costs (rent, purchase), removal and delivery, wages for workers and their manager are taken.

The estimated cost is determined by direct and overhead costs, as well as the estimated profit of the organization.

Direct costs include the cost of materials, the operation of machines and mechanisms, as well as the remuneration of employees.

Overhead costs in the construction estimate are indirect cash costs that are associated with the organization of work. These include, for example, remuneration of the administrative apparatus, payment for the use of programs for compiling estimates and other documentation, the use of mobile communications, renting premises of the administrative apparatus, etc.

Estimated profit - money to cover the costs of contractors and incentivize the work of employees (for example, allowances for processing).

Top 5 mistakes in budgeting

When drawing up construction estimates, errors periodically occur. Here are the top 5 most common mistakes.

1. No budget at all. The customer meets with the foreman and finds out the prices for the work in words. The contractor was recommended by a friend, so the future client does not doubt his honesty and simply inquires about the prices in order to estimate the costs.

As a result, the amount of expenses for construction or repair exceeds all allowable limits. After all, if there is no specific agreement on materials, the contractor will buy the amount of building materials exceeding the required volume.

1. No scope of work. The construction estimate may simply indicate the amount of costs for a particular action (for example, repairing a utility room), but the scope of work does not appear.

As a result, it turns out that the contractor, when drawing up the estimate, indicated only the main work on this object, and forgot the additional, smaller ones (on purpose or by accident - it does not matter in this case). The client has to pay.

For example, in a store, the ceiling is leveled. The contractor decided to use mesh and a minimum layer of plaster. But during the removal of the old coating, very large joints between the plates are found, which requires 5 times more plaster consumption. The customer's repair costs are on the rise.

1. Additional work on the budget. This error may be random or special. Sometimes non-professional builders are not aware of a simpler technology and assume a more complex set of works. Additional work in the estimate may also appear intentionally in order to increase the cost of wages.
2. Exceeding the amount of materials in the estimate. Overestimating the amount of materials by more than 15% of what is required is not the contractor's insurance, but a mistake. Indeed, in order to draw up a good construction estimate, for example, for the repair of a store, it is necessary to measure all walls, windows, doorways, clarify the unevenness of surfaces, etc. However, rarely does a contractor approach calculations so thoroughly.
3. Indication of not all works in the estimate. An unscrupulous contractor can devote the bulk of the estimate to preparatory work. The customer, having not fully considered the estimate, but only after seeing the final amount, sees that the price suits him, signs the contract.

As a result, the contractor does the rough work and disappears. The customer, having carefully looked at the estimate, sees that he really paid only the preparatory part. As a result, such a “mistake” in the construction estimate leads to an overpayment.

On the Yudu website, you can order professional services for the preparation of estimate documentation. YouDo performers have specialized education and rich work experience, which makes it possible to guarantee the literacy of the estimate, as well as compliance with all norms and requirements of the current legislation in the calculations.

Why do you need budget documentation?

The construction of any building, including a trading house, is a complex process that takes a lot of time and requires huge costs from the future owner. And so that these costs do not go beyond the budget allocated for these purposes, it is necessary to order an estimate for the construction of a shopping center before starting construction. Estimated documentation, taking into account the fact that it is drawn up professionally, is very important, as it allows you to:

• Monitor the compliance of the planned activities with the work carried out after the fact
• Control construction costs
• Avoid contractor fraud

In addition, the estimate of the shopping center will provide an opportunity to see the full "picture" of upcoming costs and their feasibility.

Types of estimate documentation

• Estimate for the construction of a shopping center, compiled in a labor-intensive way. This method is used for small volumes of construction work. It is understood that the customer pays only for the services of the construction organization, and the building materials are delivered to the site on their own.
• Universal estimate for construction. It is a document that indicates not only the types of work, but also all the materials used. The cost of materials in the aggregate is indicated in the appendix to the estimate documentation
• Expanded budget. Only specialists who have experience in preparing calculations for just such documentation will be able to calculate the estimate for a shopping complex of this type. Here, specialists draw up estimate documentation only in accordance with up-to-date information on prices for building materials and prices for work performed.

Where and how to order the preparation of budget documentation inexpensively?

You can order the services of professionals to draw up an estimate for the construction of a shopping complex on the Yudu website. Here the services are provided by specialists whose level of skill is confirmed by a preliminary check.

To place an order for Yuda, you must:

• Fill out an application on the main page of the site
• Indicate in the application the type of work, additional requirements, deadlines and desired cost
• Wait a few minutes until the contractors who can correctly calculate all the construction costs respond to the application
• Choose a specialist whose work meets the requirements as much as possible

Yudu contractors will be able to calculate construction estimates in full compliance with established norms and standards. Estimated documentation compiled by specialists of this level will allow in the future to exercise full control over the construction process.

In our work on the construction of commercial real estate, the most important thing is to understand the goals of the customer. Everything else is a matter of technique and professionalism of our team.

DOMAKS is proud of its highly qualified specialists who can easily cope with any task assigned to them. We offer you fast and reliable construction of commercial real estate buildings.

To be more specific, we are happy to take on the construction of amazing shopping centers, business centers, hotels, hangars, hotels, parking lots and other industrial buildings created according to unique projects. The services provided by DOMAKS are the most ideal for you, as clients, because we care about your interests, putting them above all else!!! Completely unique developments that can be built by our workers in the shortest possible time and at the same time very high quality will undoubtedly become your property!

You will hardly find analogues of projects built by DOMAKS specialists on sites like ours, because we use the most modern technologies and the best building materials for the construction of commercial real estate in St. Petersburg, Moscow, as well as in many other cities of Russia. Nothing is impossible for our clients! Do you need an excellent construction company of the best specialists to realize the desired project of a hotel complex? Do you want to implement a car park or gas station project at the lowest possible price? With us, the construction of such complexes is more than realistic and rational!!!

Guarantees in the construction of commercial real estate

We guarantee that by contacting DOMAKS you will put yourself in the hands of experienced specialists in the construction industry! Over the years, we have managed to achieve unprecedented results and now we can gladly offer our clients the best conditions for executing a transaction. Do not hesitate, the decision to turn to the best DOMAKS specialists will insure you against many production problems and incidents, as well as unforeseen material costs. Competent recommendations and advice from our qualified specialists will help you easily navigate and make the right choice in favor of the most suitable building materials, as well as finishing materials and finishing elements. Moreover, please note that our prices are even more than affordable.

Quality of work

You can learn firsthand about the quality of our work and the excellently fulfilled terms of the contract. We do not hide our achievements and are not afraid to say that our company is one of the best in St. Petersburg in the construction of buildings intended directly for commercial purposes. You can also look at the reviews of our customers posted on the DOMAKS website and make sure that our words are right!!!

Prices

Buildings up to 1000 m2 - 1.5-2 million rubles

The cost of building commercial real estate

Depending on the area, conditions, parameters, internal engineering systems, requirements for finishing, the cost of construction (building box, internal engineering, finishing) will approximately be:

Office real estate (business centers) - price: 20 -28 thousand ₽/m2

Warehouse real estate

Cold storage: 8-12 thousand ₽/m2

Industrial refrigerator: 15-22 thousand ₽/m2

Shopping centers - price: 24-36 thousand ₽/m2

Open multi-level parking - price: 8-12 thousand ₽/m2

Multifunctional buildings up to 1000 m2 - price: 20-35 thousand ₽/m2

• Performance of the Functions of the General Contractor - 5-7% of the cost of construction and installation works
• Performance of the Function of the Technical Customer - 1-2% of the cost of construction and installation works