Commercial Real Estate

Learn how to evaluate real estate development feasibility using residual land value, NPV analysis, yield on cost, and operational leverage frameworks grounded in the Geltner textbook (Chapters 28-29).

Commercial lease analysis evaluates the true economic cost or revenue of a lease by accounting for all terms, concessions, escalations, and expense obligations over the lease term.

How institutional investors incorporate real estate into multi-asset portfolios using MPT and CAPM. Covers optimal allocation, the efficient frontier with real estate, real estate beta, and the institutional allocation puzzle. Based on Geltner Chapters 21-22.

Learn the four pillars of commercial real estate due diligence — financial verification, physical inspections, legal review, and market validation — with a practical document checklist and timeline.

A complete guide to how lenders underwrite commercial real estate loans — covering DSCR, LTV, debt yield, yield degradation, and the step-by-step evaluation process from rent roll analysis through loan sizing.

A guide to CMBS — how commercial mortgages are pooled into trusts, structured into tranches with senior-to-first-loss waterfall priority, rated by credit agencies, and how they compare to residential MBS.

Learn how commercial mortgages work — CRE loan types, balloon payments, recourse vs non-recourse structure, prepayment protection, effective mortgage yield, and the refinancing decision.

Learn how depreciation tax shields, after-tax cash flow (ATCF), depreciation recapture, and the APV approach affect commercial real estate investment returns with worked examples.

Learn how leverage amplifies both returns and risk in commercial real estate. Covers the equity yield equation, positive vs negative leverage, CRE capital structure, and practical analysis steps.

Learn how to build a commercial real estate cash flow proforma, project reversion value, choose a CRE discount rate, and apply DCF valuation to commercial property investments.

Learn the DiPasquale-Wheaton four-quadrant model linking rents, property values, construction, and building stock in commercial real estate markets.

Learn how to calculate net operating income (NOI) in commercial real estate. Covers the NOI formula, PGI, vacancy, EGI, operating expenses, two worked examples, and common mistakes.