BTS: ROC = Net Profit / Total Development Cost. BTR: YOC = Stabilized NOI / Total Development Cost.
15-20% minimum. 20-30% healthy. 30%+ exceptional.
6.0-6.5% minimum primary markets. 6.5-7.5% healthy. 7.5%+ strong secondary markets.
Model ROC across cost overrun scenarios (10%, 20%), revenue shortfalls (5-10%), and timeline delays (3-12 months). P10/P50/P90 cost estimates enable this.