How Tenants Create or Destroy Value: Leasehold Valuation and its Impact on Value

Description

If you’re involved in the valuation of commercial real estate, it’s crucial to know how the terms of a lease affect value. This seminar goes beyond methodology to explore how to measure a property rights adjustment, the theory underlying the use of a leasehold yield rate (YLH) to value the leasehold, as well as the application of a property rights adjustment in all three approaches to value.
Sponsor Date Location Delivery Format State Approvals  

Who should Enroll

  • Commercial appraisers
  • Brokers and lenders who are involved in valuation of commercial real estate

Objectives

  • Recognize how the terms of a tenant’s lease impact value—either positively or negatively.
  • Identify situations that require a valuation of a leasehold.
  • Identify methodologies in valuing a leasehold, including examples and exercises.
  • Recognize the impact of a leasehold in the valuation of property using all applicable approaches.
  • Identify challenges facing appraisers performing leasehold valuation assignments.

Prerequisites


Exam

No Exam

Level

Intermediate

Program State Approval & Hours

Some AI educational programs may not be approved in every state.

Classroom
Classroom Education - A course delivered entirely in one classroom location.
 
Synchronous
Synchronous Livestream Education - Any distance education course offered by Appraisal Institute chapter or Appraisal Institute national headquarters, where the instructor and students interact simultaneously online, similar to a phone call, video chat or live webinar, or web-based meeting.

Appraisal Institute CE Points

Attend: 35 AI Points

Class Time

7 hours

Assignments

No

Program Overview


Required and/or Recommended Equipment


Additional Information

Seminar Materials Include:
  • Seminar Handbook (233 pp.)

Book Recommendations