CRE Basics:Underwriting Office Buildings/Valuation-May 2018
Dates:Wednesday, May 30th, 2018
Wednesday, June 6th, 2018
Wednesday, June 13th, 2018
Wednesday, June 20th, 2018
This class meets for four sessions, once each week, for one hour.
Time:1:00 - 2:00 p.m. EST
The course is designed to introduce the underwriting process associated with the office buildings. Beginning with an exploration of the capital sources available for office financing and then moving through the cash flow analysis, how to derive income and expenses, and the valuation process, participants will learn how underwriters determine if a particular office property is an acceptable collateral to secure a prospective mortgage. The course will also review common office lending risks and risk mitigants.
- Understand the lending platforms available for office financing.
- Examine a typical office building lease and the key clauses that are crucial to underwriting and practice abstracting a lease.
- Examine the tenancy (credit and non-credit) and how turnover affects an office building's cash flow.
- Project future cash flow of a sample office building using historical and market data and a rent roll.
- Determine the economic value of the property using the yield capitalization approach.
- Review common office lending risks and risk mitigants.
Who Should Attend?
- Junior analysts
- Loan closers
- Individuals seeking a career in commercial real estate
Instructors:All CRE Basics courses are facilitated by Gail Griffith, Associate Director, Commercial/Multifamily Education, MBA. Instructors will be announced closer to course start date.