I)             PRICE VS. VALUE – Define and Discuss
Objective:  Learn the difference between the price concluded by real estate agents and the opinion of value concluded in appraisals.  

II)            IDENTIFY OWNERSHIP INTEREST

• Fee Simple vs. Leased Fee vs. Leasehold

Objective:  Learn the impact ownership interest has on value.

III)          LEASING AGREEMENTS – What is subject’s actual income or potential income?

• Discuss specific lease terms
• Relate lease terms to market terms
• Sample Lease Questionnaire

Objective:  Learn the meaning of income and expense sharing terminology in leases, along with other pertinent lease terms in order to determine the actual net operating income to the ownership or lessor.  This is necessary to determine if the lease is at market and ultimately the impact of a lease on value. 

IV)          POTENTIAL PURCHASER
Use physical and financial information to determine the most likely purchaser

• Investor
• Owner
• Other

Objective:  Understand the Highest and Best Use of the subject property. 

V)           ANALYZE COMPARABLE DATA

• Physical Analysis of Comparable Data
• Financial Analysis of Comparable Data

Objective:  Learn the method of breaking down a sale into comparative units and applying these meaningful units to the subject in valuation techniques.  

VI)          OFFICE BUILDING CASE STUDY
Analysis of Most Probable Price based upon Sales Data and Income Stream

• Analyze Sales - Determine Value Based upon Sales Price/Square Foot
• Analyze Lease Comparables and Determine Value Based upon Three Most Common Capitalization Techniques:  
• Gross Rent/Income Multiplier
• Effective Gross Rent/Income Multiplier
• Overall Capitalization Rate – extraction and introduction to built-up rate
• Reconciliation of Value Conclusions
• Discounted Cash Flow Analysis introduction

Objective:  Use the information presented in a case study scenario to conclude a probable price of an office building property through valuation methods.