Understanding the Commercial Real Estate Market

Course Overview

Real estate comprises the world's largest asset class, yet the commercial real estate investment market remains largely opaque and misunderstood even among professionals. This intensive training course provides comprehensive insight into market function and the drivers of performance and risk.

A basic understanding of economic and statistical measures is assumed. Market experience is helpful but not required.

Who Should Attend

• Pension fund managers and trustees investing in direct property
• Investment bankers addressing defaulting property debt
• New joiners to property debt teams
• Family offices diversifying into property
• Non-property professionals in property companies or related businesses
• Economists serving property clients

Agenda

• Real estate in the context of the economy — cyclical nature of property; performance and risk factors; comparison with other asset classes; market pricing vs economic pricing; private vs public real estate
• Market structure — participants; auctions and private treaty
• Market sectors and differences — offices, retail, industrial; hotels, student housing, etc.
• Landlords and tenants — lease terms and lengths; letting incentives; locational value; rent determination
• Investors — capital valuations; capitalisation yields; debt utilisation; depreciation and obsolescence
• Performance — cyclical and secular changes
• Private equity vehicles and joint ventures
• Concluding summary — current market indicators; short- and medium-term outlook

Learning Outcomes

Participants gain a comprehensive understanding of real estate market function and the ability to identify opportunities and associated risks.