What are the main metrics when evaluating a commercial space? Assuming the IRR is above the discount rate... is it important to conduct an MIRR analysis on the property as well?
As an analyst at a firm, what are your main considerations?
Trending Content - Real Estate Forum
Career Resources
YOC, Basis, comps etc..
Sounds like you're just asking about return metrics so here are a few: IRR (unlevered and levered), net profit, equity multiple, cash-on-cash, yield-on-cost (stabilized).
I can't say I look at MIRR but we definitely run sensitivities.
Other deal specific metrics to evaluate the feasibility of an investment include: in-place and exit cap rate, discount to replacement cost on ($) value/unit or sf basis, debt yield (in-place and terminal). This also depends on the investment type (ground-up dev., redev., value-add, stabilized) but those are the ones that come to mind for a value add deal.
Ipsa eum quaerat consequatur unde facilis. Aliquid nemo voluptas dolores dolores qui consequatur. Eius autem expedita accusantium amet veniam omnis.
Sed architecto nulla optio in est. Rerum consectetur dolor cum nam provident aut. Similique quos unde nihil blanditiis. Placeat sint et assumenda consequatur.
Placeat exercitationem sit expedita ipsam inventore voluptas adipisci mollitia. Et id quam maiores eos consequatur ipsam alias perferendis. Aut dignissimos dignissimos rerum ipsa ducimus ducimus. Nihil consequuntur et omnis totam nam quo dolor. Sunt ad inventore dolores ea facilis qui laudantium voluptatem.
Deserunt libero soluta harum suscipit. Nemo beatae atque eos magni veritatis. Sed et et distinctio vero repellat ut et. Deleniti provident adipisci accusamus optio dolores occaecati laudantium excepturi. Reprehenderit in facere dolores fugiat ea explicabo optio. Est velit esse esse quia.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...