How to Value Commercial Property (Iowa, 3 hrs)

Gain a better understanding of commercial real estate valuation and models by which to choose investments.


This course provides a review of the methods used in the valuation of commercial property. Licensees will learn about the approach and analyses involved in establishing valuation opinions with clients and other professionals. The course covers the proper context of use and calculations for specialized valuation formulas: Licensees will learn about the formulas for capitalization, gross rent multiplier, break-even analysis, pricing, rate of return, internal rate of return, payback, loan to value, front-end ratio, back-end ratio, interest rate coverage, amortization, CPI, inflation, and indexing, to name a few.

Course enables students to:
  • Understand terminology of investments
  • Rank alternatives high to low
  • Assemble data
  • Prepare income statements
  • Recognize various types of valuation models
  • Learn decision-making methods
  • Match results of analysis with Investor Preference and Risk Profile
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Hours 3