Exam (elaborations)
REE5305 Quiz2 (1).
Exam of 7 pages for the course REE 5305 at REE 5305 (REE5305 Quiz2 (1).)
[Show more]
Seller
Follow
Content preview
REE5305 Quiz2Investment Value - ANS--Market Analysis
-Tenant & Lease Analysis
Estimating Expected CF (un levered) - ANS--CF from operations
-CF from sale
Estimating Value: Two Basic Models - ANS--Direct capitalization
-DCF
Effective Rent - ANS-The actual dollars collected over term of the lease divided by the number
of months.
Value is expressed... - ANS-as the present value of expected CF
-value estimates depend on the CF expectations of buyers & sellers
Market Analysis - ANS--the basis for CF estimates
-evaluate market conditions
-property specific conditions
-evaluate tenant & their leases
Underwriting Tenants - ANS--financial tenants
-credit ratings
-analyst reports
-bank relationships
-other existing obligations
Gross Lease - ANS--tenant pays rent only
-property owner pays all operating expenses
Net Leases - ANS-NNN
-direct operating expenses as outlined in lease
-property tax & insurance outlined in lease
-CAPX as outlined in lease
Hybrid Lease - ANS--shared expenses
(i.e. expense stops)
Flat Rent - ANS-No rent change over lease term
graduated or stepped lease - ANS-rent increases at the set dates in the future
, Re valuated Leases - ANS-specific time rent to be reset through appraisal
Indexed Rents - ANS-Periodic rent adjustment-CPI Index
Percentage Rent - ANS--rent partially baed on % of gross sales
-"breakpoint" or "overage"
Apartment Leases - ANS--shorter terms
(quicker response to marker conditions & more active re-tenanting)
-expense reimbursements may be paid to landlord or directly to vender (i.e. utilities)
-impacted by consumer protection laws
Office Leases - ANS--longer, more variable terms (3-7 years)
-gross & net lease terms
-gross area
-leasable area
-load factors used in assigning reimbursements for common area expenses
Industrial Leases - ANS--similar to office leases
-more individualized for tenant
-terms tend to be longer than office leases
-expenses tend to be pass through
Retail Leases - ANS--base set on expected sales per rentable square foot & traffic count
-provisions on operations may include limits on other tenants
-anchor & in line (ancillary tenants)
-percentage rent lease
-CAM
Pro Forma CF estimates include - ANS--estimates of expected CF from operations
-estimates of CF from sale
Expected CF from Operations (un levered) - ANS-PGI
-V&CL
+MISC INC
+EXP REC
-CONC
=EGI
-OE
=NOI
-CAPX
CAPX - ANS--includes property improvements
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller lydiaomutho. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for CA$11.47. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79271 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now