Retail AM Metrics/ Valuation

Currently working for a long term holder and we don't really monitor the performance closely, so I am curious what metrics does a LP or other short term operators use to evaluate a retail asset's performance? 

The first few off the top of my head are operating ratio (but what's considered good vs. bad?) and DSCR as seen in case studies for all asset type. 

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Comments (4)

Apr 7, 2021 - 7:18pm

I would love to hear someone else's opinion on this: but purely from an internal tracking standpoint I think it would makes sense to use a hypothetical equity scenario as the denominator-- Like 20-25% of the value of the asset (appraised value? cap rate based off comps?). This would give a good snapshot into what kind of returns a current investor would be achieving.

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