Long-term Value Methodologies in Commercial Real Estate Lending - Summary Report




This research reviews and builds on the Property Industry Alliance’s long-term value working group’s 2017 Report, Long-term value methodologies and real estate lending.  It develops the analysis of existing models and investigates alternative methods for assessing long-term value, along with other measures that may indicate when the probability and scale of potential falls in commercial real estate values is high. The research seeks to identify whether measures of long-term ‘sustainable’ rent and capitalisation rate can be determined and combined to produce measures of long-term ‘sustainable’ capital values.