About the Course:

Commercial Real Estate Financial Analysis and Valuation helps Florida real estate brokers and sales associates evaluate the numbers behind a commercial property transaction. Participants will learn how to turn rent rolls, lease information, and operating statements into a preliminary financial analysis and understand why sellers, buyers, and lenders may reach different conclusions about the same property.

The course builds on an understanding of commercial property, rent, expenses, net operating income (NOI), and capitalization rates. Participants will follow Harbor Point Commerce Center, a sample Florida commercial property, from its rent roll through income analysis, valuation, and lender review.

Learning Objectives:

After taking this class, participants will be able to:
 

• Read rent rolls and office and industrial stacking plans and calculate occupancy and weighted average lease term (WALT).
• Evaluate how lease structure, reimbursements, tenant credit, guaranties, lease expirations, and tenant concentration affect the reliability of property income.
• Calculate effective gross income and net operating income (NOI) and compare seller-reported and buyer-normalized NOI.
• Distinguish recurring operating expenses from debt service, leasing costs, and capital expenditures.
• Calculate capitalization value, implied capitalization rate, and price per square foot.
• Compare as-is and stabilized value and evaluate how changes in NOI and capitalization rates affect valuation conclusions.
• Identify property risks, including vacancy, lease-up costs, deferred maintenance, building condition, and near-term capital needs.
• Calculate loan-to-value (LTV), debt service coverage ratio (DSCR), debt yield, mortgage constant, and simplified maximum loan proceeds.
• Present a preliminary value range with appropriate assumptions and identify situations requiring review by an appraiser, lender, attorney, CPA, inspector, engineer, or other qualified specialist.

What to Expect:

This course combines explanations and calculator demonstrations with guided questions, short decision exercises, and discussion. Participants will work through selected problems before reviewing the answers and reasoning with the instructor. Module review questions and a final integrated property exercise will reinforce the concepts covered throughout the course.

Each participant will receive a handout and access to the complete course materials. Please bring a basic calculator; specialized financial software is not required.

Course Participation & Requirements

Participants are expected to follow all applicable ORRA policies, Professional Development policies, course requirements, and instructor directions. ORRA reserves the right to remove any participant who does not comply with applicable ORRA policies or course requirements.

ORRA follows all FREC attendance rules.

Important Note:

This course emphasizes preliminary commercial real estate financial analysis within the real estate licensee’s role. Participants will learn to identify when a transaction or financial question requires additional review by an appraiser, lender, attorney, CPA, inspector, engineer, or other qualified professional.