In real estate, capital planning is the practice of allocating capital over the anticipated hold of an asset. Inextricably tied to an owner’s overall business strategy, it's a roadmap for the investment and a reflection of the owner’s strategic priorities.
Good capital plans help commercial real estate owners:
• Manage capital requirements
• Manage large swings in cash flow
• Calculate investor returns
• Sell the asset
• Report to investors and partners
So how can owners optimize their plans?
How the typical planning process works
Best practices for better reforecasting
How various people across the organization use capital plans to achieve their business goals
How a good capital plan can improve handoffs between the acquisitions, asset management, property management and accounting teams