CRE Basics:Underwriting Office Buildings/Valuation-May 2019
Dates:Tuesday, May 28th, 2018
Monday, June 3rd, 2018
Monday, June 10th, 2018 - Please note that this session will take place over 90 minutes instead of the usual 60 minutes.
Monday, June 17th, 2018
This class meets for four sessions, once each week, for one hour, except for the 3rd week, when the session will run for 90 minutes.
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.
Objectives:By the end of the course, participants will be able to:
- 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.
MBA Diversity and Inclusion scholarship opportunities are available for this offering. Click HERE for more information.