CASE STUDY | REAL ESTATE DEVELOPMENT & LEASING
From Stagnation to Scalable Profitability
How a Real Estate Development and Leasing Firm Cut Project Timelines by 43% and Raised $5.7M in New Financing
| Industry | Real Estate Development and Leasing |
| Business Model | Mixed Revenue | Project-Based Development + Recurring Rental Income |
| Company Size | Approximately $5M Revenue |
| Engagement Type | Capital Investment Model, Operating Model Rebuild, Monthly FP&A |
| Relationship Duration | 3+ Years |
The Challenge
Real estate development is a capital-intensive business where the margin for financial error is thin. Every cost overrun on a project ripples forward requiring higher lease rates to recover, making the building less competitive in the market, and ultimately limiting occupancy before the first tenant ever signs.
That was the cycle this firm was stuck in. Project costs were consistently underestimated, pushing required lease rates above what the local market would bear. Buildings that should have been profitable were instead operating below occupancy targets, compressing net operating income and limiting the owner's ability to move confidently into new projects.
Compounding the problem was a lack of financial infrastructure on the recurring revenue side of the business. Once buildings were complete, there was no reliable model for forecasting rental income, projecting ongoing expenses, or understanding what a property was truly worth on the balance sheet.
Capital decisions were being made without a complete financial picture. The business had real potential.t needed a financial system to match it.
The Solution
The engagement began as a one-time project, a focused effort to rebuild the firm's capital investment model from the ground up.
As the work progressed and the demonstrated value became clear, the relationship expanded into a full monthly FP&A partnership. Three years later, that partnership is still active.
The initial project work centered on three interconnected areas:
-
Capital Investment Model Rebuild
MyExec built a comprehensive investment model incorporating NPV, IRR, ROI, and weighted cost of capital, with accurate debt and interest projections aligned to applicable real estate regulations. For the first time, the true cost and return profile of each project was visible before a single dollar was committed.
-
Historical Project Tracking and Cost Estimation
A historical project tracking system was implemented to begin building a data repository the firm could use to estimate future project costs with confidence. Over time, this institutional memory has become one of the firm's most valuable planning assets.
-
Operating Model Development
The operating model was rebuilt to accurately forecast ongoing rental income, model total property expenses, and produce reliable projections of net operating income. This gave the firm a clear view of each property's value on the balance sheet and a defensible framework for conversations with lenders and financing partners.
As the monthly FP&A relationship deepened, MyExec continued to provide ongoing strategic support, helping the owner evaluate new project opportunities, stress-test capital decisions, and build the financial confidence to pursue growth at a pace that would not have been possible without the infrastructure in place.
The Results
Three years in, the business looks fundamentally different thanks to their financial infrastructure
| Timelines -43% | Project completion timelines compressed from 3.5 years to approximately 2 years driven by tighter cost estimation, better capital planning, and fewer mid-project surprises. |
| Occupancy 80% to 92% | Occupancy rates on new developments climbed from 80% to 92%, made possible by lease pricing that was finally competitive with the market rather than inflated by cost overruns. |
| $5.7M New Financing | Improved financial modeling and a cleaner balance sheet picture enabled the firm to raise approximately $5.7M in additional financing, unlocking the capital to pursue multiple new projects simultaneously. |
| Multiple New Projects | With capital decisions grounded in a reliable model, the owner moved forward with confidence on several new development projects that would previously have been too uncertain to commit to. |
What This Means for Your Business
When the right financial infrastructure is in place, the next question is always about growth, not survival. Whether your business is project-based, recurring, or a mix of both, the same principle applies. Better financial visibility leads to better decisions. Better decisions lead to better outcomes. And better outcomes compound over time.
If any part of this story sounds familiar, the next step is simple
Start with our free 5-minute FP&A Assessment and get instant clarity on where your financial function stands today — and what it would take to close the gap.