What the flyer says. What the lender sees.
Marketed cap rates rarely carry vacancy, management, or replacement reserves — and almost never the right tax line. Enter a deal and watch the gap open up.
Lenders size small-balance commercial on coverage and debt yield before anything else.
What it would take
- NOI needed for the lender's minimum —
- Gap to close —
- Price that clears the minimum —
- Difference from asking —
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Check every number here yourself
Nothing in this tool is proprietary arithmetic. Here's where each input comes from and how to verify it.
Property taxes
Connecticut assesses at 70% of market value and applies one mill rate to all property classes. Rhode Island assesses at full value and many municipalities set a separate, higher commercial rate.
Rates are the Connecticut OPM FY 2025–26 primary real property rates on the October 2024 Grand List, and the Rhode Island Division of Municipal Finance FY 2026 rates on the 2025 tax roll. New Milford’s 60% homestead ratio applies to primary residences only, so commercial property there is assessed at the standard 70%.
Some towns add fire or borough district mills on particular parcels; those aren’t in these figures, so use the manual override where a district applies. In Groton, the City and Poquonock Bridge districts alone add 4.10 and 4.70 mills, and they cover much of the industrial inventory.
The revaluation trap
Most pro formas carry the seller's current tax bill forward. If the town revalues and your purchase price is above the old assessment, the bill resets upward. This tool shows the post-revaluation number by default.
Interest rates
Commercial debt is priced as a spread over a matching-term Treasury or a floating index — there is no published commercial equivalent of the residential weekly survey.
Who pays what
Under a net lease the tenant reimburses the landlord for taxes, insurance and CAM — but only for space that is actually leased. Vacant square footage still carries its share of those costs, and the landlord absorbs it.
That leakage is the line most pro formas miss entirely: the more net the lease, the more a vacancy costs you.
Reserves above the line
Replacement reserves are deducted before NOI here, which is appraisal practice. Most marketed cap rates don't deduct them, so both figures are shown side by side rather than one quietly replacing the other.
Seaport Real Estate Services · 12 Roosevelt Ave, Mystic CT · 143 Boston Post Rd, Waterford CT. We underwrite commercial deals across Connecticut and Rhode Island, with CoStar coverage from New England to the West Coast and Europe. Bring us a building and we'll run the full analysis — rent roll, lease rollover, and financing options.