Featured Articles
Maximizing Asset Value: How Cross-Functional Teams Facilitate the Transition from Function-Based to Asset-Based Structure in Real Estate Companies
Maximizing Asset Value Real estate companies may initially work with a function-based organizational structure because it is ideal for the asset creation stage, which involves development and construction. During this stage, the company may focus on hiring skilled...
Discount Rate in Property Valuation
Discount rate in property valuation is a key assumption and impacts the valuation significantly. Finding the appropriate discount rate for a specific property is a bit tricky. In this post I will discuss the impact of discount rate in the property valuation and look...
Digital Transformation in Real Estate
Introduction Real estate is one of the oldest industries in the world and has traditionally been very conservative. This has changed over time, however, as technology has become more accessible. Today, people have begun to expect more out of their real estate...
Latest Posts
Why Should You Use Feasibility Software for Real Estate?
Feasibility software for real estate development is a must for real estate development professionals. Feasibility software not only expedites the analysis process but also prevents human error from creeping in.In this post we will explore the needs and benefits of...
Relative Valuation
Relative Valuation The objective of discounted cash flow valuation is to determine the value of an asset based on its cash flow, growth, and risk. Relative valuation seeks to determine an asset's value by examining current market prices for comparable assets. Although...
Gross Rent Multiplier
What is a Gross Rent Multiplier (GRM)? You may determine the market value of an income property using the gross rent multiplier (GRM). Its a market-driven measurement. The market worth of a property you are contemplating for purchase should equal that same "X times"...
What is REIT?
What is a "REIT" (Real Estate Investment Trust)? REIT or a real estate investment trust (REIT) is a business that owns, operates, or finances real estate that brings in money. REITs are like mutual funds –they collect the money of many investors and invest. This means...
What is Return on invested capital?
Return on invested capital (ROIC) is one of the finest indications of a company's capacity to increase its value. What exactly is ROIC? Return on invested capital is a metric used to evaluate a company's effectiveness in allocating its resources to successful...
How to Optimize Capital Structure?
Capital structure is the combination of various forms of external funds, known as capital, used by a company to finance its overall operations and growth. There are several ways to measure the efficiency of the capital structure: ROIC (return on invested capital), ROE...