"Lease Modeling Test"
I've got an interview coming up at a major NYC real estate services company (CBRE, JLL, C&W) for their consulting practice. I have been told I'll be taking a "lease modeling test" during my final round. Anyone have an idea of what sort of model/questions might be asked? I'm assuming it will focus on office leases.
My best guess is they will ask me to summarize a lease, get a net effective rent, and model the cashflows through the term? Besides having to account for leasing commissions, free rent, TI, usual building expenses, etc, what other things should I keep in mind? Is it typical to do something like NPV the cash flows in this type of model. Any insight or advice would be a huge help.
This is for an analyst role in the consulting practice btw
NPV should be pretty standard. make sure you understand how to model abatement and brokerage fees. The most advanced I can think the test would get is if it asks you to model a base year structure....aka a gross lease, not NNN. So make sure you understand the idea of recoverables, etc.
Do you think it would be just model a single lease? If its a gross lease will they most likely give me the value or % of expenses so I can model how much the tenant owes landlord? If you have an idea of what this test might be can I PM you?
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