Background
Commercial Real Estate has always been affected by economic cycles, but the impact of COVID and technology will also have an ongoing impact on how and where people work and shop and therefore demand for Commercial Real Estate, as well as valuations. Given these cyclical and structural changes, as well as political tensions; lenders and investors will need to evaluate the structuring of Commercial Real transactions, monitor financing exposures more intensively, and sector and specific property selection will be increasingly important.
Course methodology
This commercial real estate debt finance training course will be delivered in two half-day modules.
Part 1 of this commercial property valuation course will be primarily focused on key features of Commercial Real Estate, the historical performance of Commercial Real Estate, and the key risk issues and the principles of valuation techniques.
Part 2 will focus on the financial structure of Commercial Real Estate transactions, and structuring issues in terms of risk protection from a lender’s standpoint.
A primary focus will be on the financing of single property transactions, and on “traditional” sectors of Commercial Real Estate – offices, retail and industrial / logistics. There will however be some brief coverage of alternative types of Real Estate such as hotels in terms of the risk analysis and how this impacts financing. There will be brief coverage of the analysis of Real Estate Investment Trusts (REIT)
To ensure that this commercial property valuation course is interactive there will be one case study involving a large-value Commercial Real Estate transaction, such as a distribution centre, throughout the training. The case study will consider risks both during the development period and also when it is income-producing.
Background on the case study and a supporting spreadsheet will be provided before the training so that participants have an opportunity to familiarise themselves with the material and maximise the benefits of the training programme. Participants will need to access the spreadsheet during the training.
Participant profile
Limited previous practical experience in the financing of Commercial Real Estate investing and transactions has been assumed. To obtain maximum benefit from this training participants should have some familiarity with the principles of financial analysis and Commercial Real Estate valuations, and the main features of the key financing products used in Commercial Real Estate finance.
Familiarity with the main functions in Excel will also assist participants in obtaining maximum benefit from this commercial real estate valuation course.