Extreme Appraising: Valuing CRE in a Down Market

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Notes

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.   

Cancellation Policy

• Up To 14 days prior to program start date, $30.00 cancellation fee.
• 7 - 13 days prior to program start date, $50.00 cancellation fee.
• Less than 7 days prior to program start date, forfeit of payment.

Cancellation Clause
All cancellations must be submitted writing via e-mail at executive.director@ncappraisalinstitute.org. Confirmed participants should not assume that cancellation has been granted until confirmation has been received. No refunds 7 days or less prior to event.

The North Carolina Chapter of the Appraisal Institute (NCAI) is not responsible for students' non-refundable airline reservations or other travel costs.

NCAI reserves the right to cancel, limit, or reschedule the program and to change faculty assignments and facility locations at any time. Prospective students should confirm their registration before making any nonrefundable airline reservations.

ADA POLICY
If you have a disability and require accommodations, please notify the NC Chapter office at executive.director@ncappraisalinstitute.org  or 704-719-2644, at least two weeks in advance and we will arrange for reasonable accommodations.

Additional Information

CE Credit Approval: NC Appraisal Board Approved for 7 Hours  

*Students seeking CE credit for this course from a state other than North Carolina are responsible for confirming with that state’s licensing board that this course will be accepted. The North Carolina Chapter recommends students check before registering*

PHOTO ID REQUIRED: Students will need to send a photo (ex: driver license photo) to executive.director@ncappraisalinstitute.org after registering. Our instructor will be verifying photo identification of students during roll call at the beginning and throughout the class. This is a requirement, and you will not receive credit if we do not have a photo to verify your identification with. 

VIDEO/AUDIO REQUIRED: Our instructor must be able to see/hear you and you must be able to see/hear the instructor. Video must remain on throughout the entire class. Zoom Meeting allows student/instructor interaction through video/audio and the chat function. This is a requirement, and you will not receive credit if you do not have video/audio capabilities to see/hear the instructor/allow the instructor to see/hear you. 

CLASS MATERIALS: Students are responsible for downloading or obtaining hard copies of the class materials. If downloading, please download before the class. Materials can be found in your Appraisal Institute account.

REQUIRED EQUIPMENT: Internet Access, Computer with Webcam/Camera, Microphone and Speakers, and additional computer screens. 

ZOOM: This course will be hosted using Zoom, a cloud platform for video, voice, content sharing, and chat runs across mobile devices, desktops, telephones, and room systems. Click here for tutorials about how to join a Zoom meeting and connect your audio and video. Zoom Technical Support can be found here.

National Disclaimer

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.