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CANCELLED Seminar: Xtreme Appraising – Valuing CRE in a Down Market

February 21 @ 8:30 am - 4:30 pm

Regrettably due to low attendance this offering has been cancelled.
All registrants are being notified and refunds are being issued.

Instructor and Developer: Gary DeWeese, MAI

 

“The Excel spreadsheet that Gary provides is worth the price of admission!  Invaluable.”
– February 2023 Attendee

“Gary’s analysis comes from the real world.  His examples are grounded in reality.”
– August 2020 Attendee

” . . . depth of analysis is a breath of fresh air to the usual mundane CE choices available.”
– May 2021 Attendee

“Gary is obviously a leading expert in the field and his depth of knowledge is extremely impressive.  He effectively explained very complex concepts . . . [the] program gave me a deeper appreciation for the depth and complexity of these kinds of appraisals.”

 

Gary Photo cropped 2015 webAre you really prepared to value commercial estate in this rapidly changing market?

The historic increase in Treasury yields is putting extreme pressure on cap rates and increasing investor yield requirements. Rates are likely to hold at current levels for longer than anticipated just a few months ago. CRE values will likely decrease over the next 12 months as cap rates respond and financing capital is hamstrung by debt service constraints. Rising vacancy rates and operating expenses are also negatively affecting net operating income, further hampering CRE values. Add to these dynamics the possibility that your subject property may be performing worse than the general market.

Gary will address critical issues, often misunderstood even by experienced commercial appraisers, in valuing under-performing property in a declining market.

 

This 7-hour synchronous seminar will be based on a hypothetical case study property, a multi-tenant office building. The primary focus of the case study is to value the property “as is” and “when stabilized”, using all three valuation approaches, based on the following circumstances:

 

  • The property is 50% vacant in a market experiencing 20% vacancy, thus necessitating the proper measurement of a RENT-UP ADJUSTMENT to be incorporated in all three approaches to value the property “as is”.
  • The market is forecast to experience on-going, but temporary, EXTERNAL OBSOLESCENCE based on a detailed fundamental market analysis, which will be demonstrated using current methodologies and also incorporated in valuations.


In addition, the case study property also incorporates two other issues that will need to be addressed in the valuations.

 

  • One lease at the property was first negotiated when the market was much stronger. The rent for this lease was recently reduced and the term extended, in a so-called “blend and extend” renegotiation, but is still above market, therefore necessitating a “property rights adjustment”.
  • Another lease includes an apparent higher than market rent due to substantial landlord provided concessions, therefore necessitating a measure of “effective rent” for purposes of forecasting the rent at the time of lease renewal.

 

All of these issues will be discussed and then analyzed entirely in Excel, although attendees do not need to be an Excel expert to benefit from the seminar.

 

A Special Note About Registering:

  • Never attended an Appraisal Institute Offering or not yet updated your password / log-in since October 1, 2019 – follow these simple steps before registering.
  • Those seeking credit from states outside of California are strongly encouraged to check directly with their state licensing board(s) to confirm that the specific state(s) will (1) accept virtual / classroom education, (2) accepts education from an out-of-state provider and/or (3) offers reciprocal credit since the offering is approved by the CA BREA.
  • This synchronous program is approved for 35 points of Appraisal Institute CEC and 7-hours of BREA (#23CP754601528) and State Board of Equalization (SBE) Training Credit CAR (#102406).
  • Instruction will be held via Interactive Technology (ZOOM) and is based on the “live” classroom version that falls under the requirements for synchronous education
  • It is the student’s responsibility to have the required equipment – dependable Internet access, computer, webcam and microphone, agrees that attendance will be monitored and to forward their Photo ID/ Driver’s License to the Chapter Office upon completing your online registration.

 

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Details

Date:
February 21
Time:
8:30 am - 4:30 pm
Event Category: