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Concepts

December 7, 2021

4 min read

Six Practical Methods to Value Commercial Real Estate

Navigating the commercial real estate landscape often feels like steering a ship

The cost approach to commercial property valuation starts with a rather somber question: What would it cost to rebuild this structure from scratch? This technique isn't just about bricks and mortar; it also factors in the current land value and the various costs associated with replacing the existing structure.

Imagine a historical building with intricate architecture and unique features; traditional comparables wouldn't suffice to estimate its worth. In such cases, the cost approach serves as a practical method, particularly if the structure contributes significantly to the land's value.

This is a method we use a lot to discuss the big picture of our portfolio strategy. Given the current market conditions, are we able to acquire existing assets below replacement cost, or is it more feasible to develop new assets?

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July 6, 2021

4 min read

Property, Asset, and Portfolio Management in Real Estate

In real estate, particularly within private equity, there are three...

In real estate, particularly within private equity, there are three crucial management layers that investors need to understand: property management, asset management, and portfolio management. Each layer has its unique roles, objectives, and functions, which this post aims to clarify.

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