User Cost of Occupancy Analysis

Course Length: 
Variable based on delivery format
Available Online: 
Yes
Designation or Certification: 
Certified Commercial Investment Member (CCIM), Certified International Property Specialist (CIPS)
Whether you lease or buy, you pay for the space you occupy. Examine several occupancy alternatives and how to quantify their respective occupancy costs. Learn how to apply the Investment Base concept to make better occupancy decisions, and use the latest user decisions spreadsheets.

Upon successful completion of this course you will be able to:
  • Compare and contrast the economics of alternative lease decisions.
  • Communicate the impact of common real estate transactions on a user's financial statements and reports.
  • List the benefits and drawbacks to users and investors in a sale-leaseback transaction.
  • Calculate and interpret the net present values (NPVs) of the user’s continue-to-own and the sale-leaseback alternatives.
  • Calculate and interpret the yield (internal rate of return) of the differential cash flows after tax from the user's continue-to-own and the sale-leaseback alternatives.
  • Calculate and explain the sales price point of indifference where the NPVs of the user's continue-to-own and the sale-leaseback alternatives are equal.
  • Measure the impact of generally accepted accounting principles (GAAP) reporting on the user's financial statements if a sale-leaseback is affected.
  • Calculate and interpret certain measures of investment performance, including acquisition cap rate, before tax cash on cash, before- and after-tax internal rate of return (IRR), and capital accumulation for a potential investor in a sale-leaseback transaction.

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