This manual is organized into seven sections each relating to property analysis of commercial real estate:
- Section One gives an overview of the two different types of analysis, i .e., property analysis and investment analysis, that are involved in analyzing commercial real estate.
- Section Two addresses what is involved in conducting due diligence on a commercial real estate project.
- Section Three addresses the concept of capitalization rates and explains how a capitalization rate is computed.
- Section Four reviews the elements of a financial statement, particularly focusing on the importance of Net Operating Income and Net Cash Flow.
- Section Five provides examples of the various types of income statements and introduces Pro Forma Income Statements used in forecasting income and expenses.
- Section Six introduces the various property analysis metrics involved in reviewing and comparing similar commercial real estate properties
- Section Seven incorporates the use of property analysis metrics in evaluating various commercial real estate property types and explains how these metrics are used to analyze and compare various properties to the subject property.