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Analyzing Tenant Credit Risk and Commercial Lease Analysis
April 3, 2017
* includes late fee
Vincent M. Dowling, MAI, SRA
Greater Capital Area Association of REALTORS®
15201 Diamondback Drive, Suite 100
Sponsor / Contact
Washington DC Metropolitan Area
This seminar was developed for commercial real estate appraisers, review appraisers, and lenders and introduces participants to the ways tenant credit risk affects the valuation of commercial real estate and the analysis of leases. The credit of a tenant, or lack thereof, is the difference between a reliable, predictable income stream with strong value or a property that can “go dark” on a moment’s notice. Long-term leases to the wrong tenant can be worthless and negatively affect value. Duplicate buildings at the same intersection can have drastically different values, depending upon the tenant. Since participants will come from a variety of background experiences, the fundamental appraisal theory, definitions, and discussion issues will generate a variety of solutions. The principles presented in this seminar primarily affect general appraisers working with commercial real estate.
Upon completion of this seminar, participants should be able to:
• Recognize tenant credit risk
• Identify lease terms that affect tenant credit risk
• Identify key lease clauses that affect tenant credit risk
• Recognize the strength of the guarantor
• Recognize benefits and costs related to lease structures and funded escrows
• Identify methods for interpreting the market
• Recognize investment grade and non-investment grade properties
• Distinguish differences among financial statements
• Recognize fundamental tenant risk analysis
• Identify four C’s of credit analysis
• Recognize the breadth of the credit crisis and basic causes
• Identify various approaches to estimating vacancy
• Identify various approaches to estimating credit loss
• Recognize the effects of contract rent versus market rent relative to risk
• Recognize renewal risk and renegotiating risk
• Identify the consequences of the credit crisis on capitalization, discount, and terminal rates
• Identify consequences of the credit crisis on market renewal assumptions, growth, and expense rates
Who Should Enroll
This seminar was developed for commercial real estate appraisers, review appraisers, and lenders.
Up To 14 days prior to program start date, refund in full.
5 - 13 days prior to program start date, $50.00 cancellation fee.
Less than 5 days prior to program start date, forfeit of payment.
Up To 14 days prior to program start date, no transfer fee.
5 - 13 days prior to program start date, $25.00 transfer fee.
Less than 5 days prior to program start date, no transfer allowed.
Program materials can be downloaded by the student.
Class will be held at the Greater Capital Area Association of Realtors office in Rockville, MD.
Registration begins at 8:00am. Seminar is from 8:30am-5pm with a one hour lunch (on your own).
Greater Capital Area Association of Realtors
15201 Diamondback Drive
Rockville, MD 20850
200 W. Madison, Suite 1500, Chicago, IL 60606
888-7JOINAI (756-4624) |
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