Real Estate Valuation
Free CAIA Level I lesson in Real Assets. 29 min read, ~4,404 words.
Development yield = stabilized NOI / total project cost: spread = yield − market cap rate, with 150-200 bps the normal hurdle. Hard costs include land; soft costs include construction loan interest: contingency rounds out total project cost. Three valuation approaches (sales comparison, income, cost): institutional CRE leans heavily on...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- natural resources
- land
- timber
- farmland
- contagion indices
- timber farmland returns
- commodities no futures
- term structure
- rolling contracts
- backwardation contango
- commodity diversification
- expected returns
- commodity indices
- commodity returns
- commodity producers
- mlps
- infra overview
- infra classifications
- investing infra
- infra risks
- ip overview
- ip cash flows
- art
- patents
- re categories
- cre advantages
- re styles
- re office
- re industrial retail
- re multifamily
- cre debt
- cre equity leases
- mortgage underwriting
- commercial mortgages
- cre financing
- cre vehicles
- liquid cre
- re development
- cre valuation
- income approach
- public re vehicles
- reit returns
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