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Analyzing Tenant Credit Risk and Commercial Lease Analysis

CALL   Date: December 6 - 7, 2018   Location: Synchronous
Category  General [Gen]  
Level  Intermediate  
Attendance Hours  7.0  
Current Price  $ 175.00 AI Price  
$ 199.00 Full Price  
Robert L. Moorman, MAI, SRA, AI-GRS  
Name  Synchronous  
City  Synchronous  
Click Here to check state approvals
  Sponsor / Contact  
  Appraisal Institute  
Phone  (312) 335-4473  
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.

Class Schedule
Each class runs for 3.5 hours each day with at least two breaks during that time. The seminar runs for 2 half-days.

Additional Information
For specific offering details including exact dates and times, click on "location details" to the right under "Class Schedule & Locations."

A financial calculator is required. The accepted model used in the course is the HP-12C.
Cancellation Policy
  • Up To 15 days prior to program start date, refund in full.
  • 7 - 14 days prior to program start date, $100.00 cancellation fee.
  • Less than 7 days prior to program start date, forfeit of payment.
Continuing Education Credit
This seminar is approved for 7 hours of Appraisal Institute continuing education credit. This seminar might not be approved in all states by the offering date. Please check with your state board for state approval information.

This confirmation will serve as your receipt. All cancellations must be submitted in writing. Confirmed students should not assume that cancellation has been granted until a confirmation has been received.

Other Information
If you have a disability and require accommodation, please notify the national office at least two weeks in advance and we will arrange for reasonable accommodation. The Appraisal Institute reserves the rights to cancel, limit, or reschedule the seminar and to change faculty assignments and facility locations at any time.

Program materials can be downloaded by the student.
  Additional Information  
Class Schedule:
Class begins each day at 10:00AM Central (8:00AM Pacific, 9:00AM Mountain, 11:00AM Eastern). Each class runs for three and a half (3.5) hours each day with at least two breaks during that time. The program runs for 2 half-days.

Times shown are Central time zone.

  • Thursday, December 6, Day 1: 10:00 am - 1:30 pm
  • Friday, December 7, Day 2: 10:00 am - 1:30 pm

Attendance Policy:
The Appraisal Institute issues certificates for state certification/licensing or state continuing education credit that verify successful completion and attendance of 100% with your grade notification letter. Please note, if Appraisal Institute attendance records indicate attendance of less than 100%, the student certificate will reflect this and state agencies may refuse to award credit.

Live Online (Synchronous)

After registration, materials can be downloaded here: This materials link will also be sent in registration and reminder emails.

Several minutes after you register, you will receive second e-mail which includes instructions in how to connect to the synchronous sessions.
If you do not receive the connection information, please check your junk, spam, or quarantine folders.
Connection e-mail reminders are sent 1 week, 1 day, and 1 hour prior to synchronous session start time.

For questions, please e-mail or call (312) 335-4207.



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