1031 Exchange Real Estate Resources

How to Read a Retail Property Pro Forma

General Property Education

Start with the Sunday rule

A retail pro forma is a worksheet that organizes expected property income and operating costs. In Bergen County, Sunday sales limits can affect some tenants.

This article explains a simple review process. It is general property information only.

In This Guide

Three checks before you use a pro forma

Check the tenant use

Confirm what each tenant sells and whether Sunday sales are allowed.

Check the lease

Read the rent, operating, and sales-rent terms.

Check the records

Use current rent rolls, expense records, and local rules.

What Sunday rules can change

Bergen County Sunday sales limits apply to certain retail goods. Wyckoff’s guidance lists clothing, building and lumber materials, furniture, and household or office appliances among the restricted categories.

The same guidance lists exceptions such as prepared food, drugs, newspapers, gasoline, emergency vehicle repairs, and certain personal-care items.

Retail Sunday operating review guide
Review Sunday separately for each tenant. A restriction may apply to some goods but not others.

Build the worksheet in a clear order

Begin with the rent roll. Record base rent, lease term, options, and vacant space. Read any rent provision tied to a tenant’s sales.

Next, list operating costs. Taxes, insurance, utilities, repairs, management, security, and common-area services can affect NOI.

Retail pro forma review workflow
A simple worksheet moves from property income and occupancy to operating costs and NOI.

Review each tenant on its own

Do not apply one Sunday assumption to the entire center. Some tenants may sell restricted goods, while others may provide services or sell goods treated differently under local rules.

Keep a written record of the source of each assumption. If a rule, lease term, or expense is unclear, obtain the relevant document or ask an appropriate official or qualified professional.

Sources

Sources for further verification

Use current primary and institutional sources when reviewing a specific property.

  1. National Association of REALTORS®: Commercial Real Estate Metro Market Dashboard
  2. Fannie Mae Multifamily Guide: Underwriting
  3. Township of Wyckoff: Why Sunday shopping is prohibited in Wyckoff and throughout Bergen County

Frequently Asked Questions

A retail pro forma is a worksheet that organizes expected income and operating costs for a property.

Sunday rules can affect the sale of certain goods. Check the tenant’s use, product mix, and local requirements.

Review the rent roll, lease terms, occupancy information, operating expenses, repair records, and local requirements.

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Tax Advice Disclaimer

The information in this article does not constitute tax advice. Consult a qualified tax professional about your specific circumstances.