Investor Fundamentals

Apartment Investing Case Study

In this article we are going to conduct an investment analysis on a 140 unit apartment building acquisition. We’ll walk through the process of forecasting cash flows and also explain the calculations needed to determine investment value. Read on as we take a deep dive into the world of apartment investing.

How Market Leasing Assumptions Work in Commercial Real Estate

Market leasing assumptions define what happens after a tenant lease expires in a commercial property. Since it’s unknown whether the tenant will renew its lease or not, there are two sets of assumptions. One set of assumptions is used if a new tenant needs to be found. The second set of assumptions is used if an existing tenant renews its lease. Then, there is a renewal probability that creates a weighted average between these two sets of assumptions.