Retail Property Appraisals

Learn how to build a Retail Property cash flow model. This course takes delegates step by step through the creation of a full shopping centre cash flow model. As a modelling course it is almost entirely Excel based. The course starts by analysing the variables that influence shopping centre investment returns. Delegates will calculate Key Performance Indicators (KPIs) that can be shown to influence the financial model from Tenancy through to Risk.

If you already have the skills from our Real Estate Analyst course, then why not challenge yourself to more on our Retail Property Appraisals course?

Retail property models are some of the most difficult to master. The key reasons are:

A greater number of lease terms
More ways of calculating rent
A larger number of tenants in a single building
More detailed cost sharing agreements

Who will benefit from this course?

Fund managers who have done the Analyst course and need to be able to understand and model sophisticated Retail assets
Analyst and modellers who would like to improve their understanding of financial models in respect of retail property assets
Mid-level to senior Real Estate Analysts who would like to advance their financial modelling skills

Day One

Retail Property Models

What makes retail property models unique?
Input Variables and the Profit Cycle
Financial Model Layout and Design
Understanding the nature of Retail Property Cash Flows

Advanced Cash Flow Modelling

Internal Rate of Return (IRR), Net Present Value (NPV) and other metrics
The three Rent Function methods
Logic Functions and Arrays
Multi-let Cash Flows
Multiple and Period Varying Growth Rates

Retail Property Rent Functions

Common Retail Property Lease Covenants
Retail Tenancy Schedules
Zone A calculations
Turnover, affordability ratios and rental capture
Rental Growth, inflation and fixed rent
Rent Functions and Rent Projection

Analysing the Tenancy Schedule

Hypothetical study of ‘The Galleries’ Shopping Centre
Unit Plan and Micro Location
Using Excel as a database and linking to external data sources
Data visualisation methods
The Bayfield Retail Quilt (Tenant Mix Analysis)
Lease Expiry Profiles and Event Analysis

Round up and Conclusions of Day One

Day Two

Shopping Centre Portfolio Case Study

Choosing the Retailer Classification
Cross Referencing Consumer Classification
Completing the Tenancy Schedule
Generating Typologies from tenancy schedules

Rent Functions for Shopping Centres

Breaking Complex rent functions from existing models
Planning the rent function
Events and Rents Table formulae
Full Rent Function

Full Project Cash Flow

Scenario Testing and Risk Analysis
Building a rent function for the case study shopping centre
Testing the rent function
Creating CAPEX and OPEX functions for the case study
Calculating IRR, NPV and other Investment Metrics
Testing the IRR for errors

Footfall and Performance Metrics

Destination capacity calculations
Footfall Signatures
Peak hour performance
Performance Metrics

Round up and Conclusions of Day Two

Included With Course

Post-Course Support
- Two months of Questions and Answers.
- One year of support is available for an additional fee – Request for more information.*
CPD Accredited Certificate & LinkedIn Proficiency Badge
Online Learning Platform access
- Course Manual – Digital
- Course Files
- Further Learning Resources (Reading, Files, Videos)
Hard-copy Course Manual* If purchased separately
* Included with In-Person Booking.