Analyzing Operating Expenses is designed to help you better estimate operating expenses on commercial real estate. Suggested methods for improving analysis of operating expenses will be reviewed, and information sources available for you to forecast expenses will be explored. Expense categories will be presented with in-depth analysis, as well as a review of characteristics of operating expenses. In this online seminar, you will be exposed to three case studies to provide practical insight into the expense analysis process.
This seminar is designed to benefit commercial appraisers and property analysts of various skill and experience levels. All appraisers and analysts, experienced or otherwise, can profit from the enhanced awareness that appropriately forecasting operating expenses can have on preparing supportable estimates of value.
Module 1: Overview of Operating Expenses
Module 2: Information Sources and Expense Categories
Module 3: Real Estate Tax Expense Analysis
Module 4: Insurance Expense Analysis and Case Study 1
Module 5: Variable Expense Analysis
Module 6: Case Study 2 - Apartment Complex
Module 7: Other Expense Analysis and Case Study 3
The presentation is in seven modules in essentially three parts:
Part I (Modules 1 and 2) includes an overview of operating expenses and provides basic information on where to obtain support for the analysis of operating expenses.
Part II (Modules 3 and 4) covers those expenses that are typically referenced as fixed expenses, and it concludes with a case study to demonstrate the role the expense analysis process has on a retail shopping center.
Part III (Modules 5 -7) cover variable and other type expenses that can have a material impact on both a property’s operating expenses and the property’s ultimate market value.
• Learn key operating expense questions to ask owners/managers to better understand variations in expenses.
• Explore a variety of expense information sources.
• Review the need to analyze historical property expenses.
• Review various expense categories.
• Explore the concepts of operating expenses, capital expenses, and non-recurring expenses and how these expenses should be analyzed.
AI CE Credit for Designated members and Practicing Affiliates
• Attend Only = 35 points