CCA 108: Analyzing Commercial Real Estate

Analyzing Commercial Real Estate is the eighth course in the Certified Commercial Advisor (CCA) designation program. This class teaches how to analyze commercial real estate from a financial perspective. It introduces the elements of an income statement and how debt, net income and net cash flow are determined. It also provides the basic property analysis metrics of capitalization rate, occupancy rate, vacancy rate, operating expense ratio, operating expenses per unit, price per unit and per square foot, and rent per square foot. It also identifies the metrics used for each property type. After completing this course, you will be able to:

• Understand income, operating expenses, and debt on the income statement and how they relate to the computation of net income and net cash flow.
• Identify basic property analysis metrics such as capitalization rate, occupancy rate, vacancy rate, operating expense ratio, and various per unit and per square foot computations.
• Determine which property provides the best property metrics and how they apply to the acquisition of a commercial property.