The Importance of Looking Beyond Standard Real Estate Valuation Metrics

Discount rates and terminal cap rates are often used to compare real estate assets and funds, but these metrics tell only part of the story. A property's value is also shaped by the underlying cash flow assumptions, including net operating income (NOI) growth, occupancy, market rents and other key drivers that can materially alter valuation outcomes.  

Our latest white paper, "The Importance of Looking Beyond Standard Real Estate Valuation Metrics," uses a $1.4 billion office portfolio case study to demonstrate how changes in cash flow assumptions can produce dramatically different discount rates and terminal cap rates while arriving at the same value—and, conversely, how higher rates can still support a higher valuation. Fill out the form to download your free copy and gain a deeper understanding of the assumptions that drive real estate valuations. 

For more information on SitusAMC’s Real Estate Valuation Services, visit our website.