Discounted Cash Flow Analysis and Lease Analysis

ISBN: n/a
Order No: 3244

Lease income is a key factor affecting the value of properties. Financial analysis of all economic factors affecting a lease including concessions, buyouts, and alternative leases is a skill of a competent property manager. By understanding the time value of money (TVM), and by using discounted cash flow techniques (DCF), the effect of rent concessions and the cash flows associated with leases may be properly analyzed. In this training module, you will learn to:

• Discount all economic terms of a lease to determine effective rent
• Calculate the cost to buy out leases while achieving a required return
• Analyze lease income to compare multiple leases

How do these concepts relate to the "big picture"? To find out how adjusted rent calculation relates to other financial analysis components and to evaluate the performance of your properties, order the IREM Financial Analysis Spreadsheet.