This course will cover the art and science of commercial property valuation, from information gathering, the due diligence process, the core valuation methods used for commercial property, and how to create simple valuation models for commercial property using Microsoft Excel as a calculation tool.
Don’t underestimate the art of commercial property valuation. The course will explain the timeline of a valuation, using an example. Each step will be discussed and explained so learners will understand the WHY of the valuation elements. This builds confidence so learners will be able to justify every aspect of their own valuation and make sound decisions based on evidence.
Who should attend this course?
This course is designed to give delegates the background, methodology and practical tools to understand and produce commercial property valuations. Ideal for anyone who needs to produce, interpret or make decisions based upon valuations for commercial property.
- finance directors
- board members
- senior leaders
- specialists in related business fields such as lawyers and accountants.
We will cover the main purposes, bases and methods for commercial real estate valuation, culminating in producing a valuation using Excel as a calculation tool. By the end of the course, delegates will be able to confidently use spreadsheets to assert market values, while at the same time following best practices in spreadsheet modelling and valuation methodology
Commercial real estate valuation is a skillset that is always in demand. Many valuers lack the technical abilities to produce these on a spreadsheet, instead heavily relying on third-party, black box software to produce values.
The Commercial Property Valuation in Excel course will provide the participants a very valuable skillset, a pre-requisite for many commercial property valuation jobs. Strong valuation knowledge coupled with technology expertise is now a requirement for the successful valuation surveyor.
The benefits of using Excel is allowing valuers to create a more transparent valuation tool, understand the workings behind the calculations and as such, feel more confident with their valuation output.
- Feel confident at explaining the holistic overview for commercial valuation
- Be able to articulate the valuation process from beginning to end.
- Master the key RICS valuation standards
- Understand the analysis that supports valuation inputs
- Create your own valuation model
– Online: 4 days, 9am to 1pm
CPD Hours: 14
Maximum number of delegates: 8
Course fee: Online £995 + VAT, Face-to-face £1,195 + VAT (Payment Plan available)
7-10 December 2020 – Online, from 9 am to 1 pm
1-4 March 2021
21-24 June 2021
Face to Face: Day 1
Online: Sessions 1 and 2
Preparing to Value
• The concept of valuation
• Valuation steps
• Due diligence
• On site investigations – inspection & measurement
• Market sentiments
• Ascertain value significant lease terms in a tenancy
• Rental analysis
• Input versus output yields: initial, reversionary, exit and equivalent yields
• Calculation of output yields, including the equivalent yield in the Traditional Method and Discounted Cash Flow
• What are yields telling you about the property?
• Identifying the appropriate method of valuation and yields
Face to Face: Day 2
Online: Sessions 3 and 4
Basics of Excel Spreadsheet Modelling
• Golden rules for creating valuation models
• Setting up a valuation model and maintenance
• Excel short-cuts and how to become an efficient Excel user
• Data management and housekeeping in Excel
Traditional Investment Methods
• Under- and Over-rented scenarios
• Term & Reversion
• Hardcore & Layer Method
• Hardcore & Top Slice Method
• Years’ Purchase (YP) calculations and yields
Discounted Cash Flow Method
• Setting up the cash flow model using Excel functions
• Present Value (PV), Future Value (FV) and the Net Cash Flow (NCF)
• Calculation of exit value
• Capital value and returns calculations using Excel functions
Online: Session 5
Development Residual Method
• The Profits Method
• Gross Development Value (GDV) vs Net Development Value (NDV)
• Development costs calculations
• Financing costs calculations
• Residual Land Value calculation based on Profit on Cost (POC) and Profit on Gross and Net Development Values
• Land value based on different development options
• Setting up sensitivity data tables
• Creating sensitivity charts