Location: Virtual Classroom, MD
- Virtual Classroom
- Virtual Classroom, MD
- DeWeese, Gary
- Please note that you must have a webcam on your computer to verify attendance.
Full Price: $185.00
AI Price: $160.00
Given the possibility of declines in the value of
CRE as a result of COVID-19, this seminar will address critical issues, often
misunderstood even by experienced commercial appraisers, in valuing property in
a declining market.
The seminar will be based on a hypothetical case
study property, a multi-tenant office building. The primary focus of the case
study is to value the property “as is” and “when stabilized”, using all three
valuation approaches, based on the following circumstances:
- The property is 50% vacant in a market experiencing
20% vacancy, thus necessitating the proper measurement of a rent-up adjustment
to be incorporated in all three approaches to value the property “as is”.
- The market is forecast to experience on-going, but
temporary, external obsolescence based on a detailed fundamental market
analysis, which will be demonstrated using current methodologies and also
incorporated in valuations.
In addition, the case study property also
incorporates two other issues that will need to be addressed in the valuations.
- One lease at the property was first negotiated when
the market was much stronger. The rent for this lease was recently reduced and
the term extended, in a so-called “blend and extend” renegotiation, but is
still above market, therefore necessitating a “property rights adjustment”.
- Another lease includes an apparent higher than
market rent due to substantial landlord provided concessions, therefore
necessitating a measure of “effective rent” for purposes of forecasting the
rent at the time of lease renewal.
these issues will be discussed and then analyzed entirely in Excel, although
attendees do not need to be an Excel expert to benefit from the seminar.
1: Overview of Case Study Property (8:30 - 9 am)
2: Purpose and Summary of the Market
Analysis (9 – 9:30 am)
3: Addressing an Above-Market Lease with a Property Rights adjustment (9:30
- 10:30 am)
– 10:45 am )
4: Measuring Effective Rent for a Lease with concessions (10:45 – 11:15 am)
5: Calculating the Rent-Up Adjustment for the “As Is” Valuation (11:00
- 1 pm)
6: Market Analysis: evidence of External Obsolescence/Methods
of calculating (1
– 2:30 pm)
– 2:45 pm)
7: Determining the “When Stabilized”
Value via the
Income, Sales Comparison and Cost Approaches (2:45
8: Reconciliation and Wrap-up (4:15 –
ABOUT THE DEVELOPER
Gary S. DeWeese, MAI, is an instructor for the Appraisal Institute
and teaches, among other courses, Advanced Market Analysis and Highest and Best
Use, Advanced Income Capitalization and Advanced Concepts and Case Studies. He
is the founder and principal of Real Estate Strategic Solutions, LLC, a real
estate consulting firm specializing in litigation support, appraisal
arbitration, public-private sector development, tax appeal work involving REIT
valuation metrics, and other unique assignments. Gary is the former Assistant Treasurer-Real
Estate and the Director of Real Estate Investments for the University of
California Pension Plan and Endowment where he was the senior management
executive responsible for both public and private real estate investments of
the portfolios and head of the corporate real estate function. Gary has an MBA
from the University of California, Berkeley.
Gary has authored three manuscripts for The Appraisal Journal and has taught extensively in Asia and as
guest lecturer at UC Berkeley. He can be contacted at 925-216-8751 or
This Educational Program was developed by an outside party. The Appraisal Institute Chapter made arrangements for the Third-Party to offer the Program with the intent of addressing topic(s) based on a certain chapter or local need for such topic, solely educational and informational purposes. The Appraisal Institute national organization was not involved in developing or organizing the Program and does not endorse the Program or its content.
The content of this Program, including but not limited to any written materials and presenter comments, does not represent the viewpoint of the Appraisal Institute (defined as including but not limited to, the national organization, its Regions, Chapters, members, candidates, affiliates and staff) unless formally adopted by the national Board of Directors. Further, the Appraisal Institute has not peer-reviewed or approved the content of the Program and does not warrant the accuracy or timeliness of the content of the Program. The Appraisal Institute does not publish examination review materials. The content of the Program is subject to court decisions and local, state and federal laws and regulations and any such revisions of such laws and regulations.
This Program is presented with the understanding that the Appraisal Institute is not engaged in rendering legal, accounting or other professional advice or services. Nothing in the Program is to be construed as the offering of such advice or services. If expert advice or services are required, attendees and readers are responsible for obtaining such advice or services from appropriate professionals.
Please note that 100% attendance is required in order to receive any approved state credit or to be awarded AI CE points. It is imperative that you check with your state board for state approval information before completing registration.
If you have a disability and require accommodation, please notify the sponsor at least two weeks in advance for reasonable accommodations to be arranged.
The Appraisal Institute reserves the rights to cancel, limit, or reschedule the program and to change instructor assignments and facility locations at any time.