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Real Estate Property and Portfolio Valuation
Property dynamics can be volatile, to say the least: Stores open and close, companies expand and contract, families move. As a result, occupancy levels, tenant demand and usage constantly change, all if which impact property values. An increased focus on independence and governance—along with a number of regulatory changes—has forced many commercial real estate managers and operators to seek third-party valuation advice. As part of RSM’s financial advisory services, our team delivers quantitative and qualitative insight on the fundamentals of a real estate entity, asset or portfolio, competitors, and the overall market dynamics that affect value.
Our professionals can work with you to establish real estate values for financial reporting, transactions, taxation, financing, litigation and internal management purposes. We can assist with debt valuations, acquisition and loan underwriting due diligence, third-party and internal-valuation reviews, feasibility studies, market research, cash flow modeling and more.
Real estate financial and valuation issues:
Real estate financial reporting: Supportable valuation documentation and sound market analysis may be needed to ensure valuation conclusions are robust, defensible and clear.
Analysis of methods, assumptions and data: Following valuation assessments made by real estate internal teams or third parties, an objective view of the assumptions made regarding investment rates, growth rates, income and expenses, markets, and other areas that informed the assessments may be required.
Market and feasibility studies: Real estate investors must have a robust understanding of markets, as well as supply and demand to determine the best scenarios for achieving the highest return on investments in properties of all types.
Fair value reporting: Companies must determine the fair value of assets and liabilities at the date of acquisition and subsequently test for impairment. While problems can arise when determining the fair value of tangible assets, applying the rules to intangible assets makes the process of reaching that determination much more complex.
Portfolio benchmarking: Data on funds and other portfolios can be used to compare investment and rent growth rates, cash flow, and other criteria to provide an accurate evaluation of property performance.
Real estate tax credit advisory: A variety of federal, state and local tax credits and other incentives may be available to help finance your real estate development and renovation projects. From structuring the transaction to assembling application packages, our real estate tax specialists are here for you.
Deal underwriting: Complete underwriting analysis includes development of or working with existing underwriting templates, conducting financial due diligence, performing lease analysis and abstracts, site inspections, borrower analysis, and market research.