Retail Property Appraisals

Learn how to build a Retail Property cash flow model. This course takes delegates step by step through the creation of a full shopping centre cash flow model. As a modelling course it is almost entirely Excel based. The course starts by analysing the variables that influence shopping centre investment returns. Delegates will calculate Key Performance Indicators (KPIs) that can be shown to influence the financial model from Tenancy through to Risk.

If you already have the skills from our Real Estate Analyst course, then why not challenge yourself to more on our Retail Property Appraisals course?

Retail property models are some of the most difficult to master. The key reasons are:

  • A greater number of lease terms
  • More ways of calculating rent
  • A larger number of tenants in a single building
  • More detailed cost sharing agreements

Who will benefit from this course?

  • Fund managers who have done the Analyst course and need to be able to understand and model sophisticated Retail assets
  • Analyst and modellers who would like to improve their understanding of financial models in respect of retail property assets
  • Mid-level to senior Real Estate Analysts who would like to advance their financial modelling skills

Course Outline

Retail Property Models

  • What makes retail property models unique?
  • Input Variables and the Profit Cycle
  • Financial Model Layout and Design
  • Understanding the nature of Retail Property Cash Flows

Advanced Cash Flow Modelling

  • Internal Rate of Return (IRR), Net Present Value (NPV) and other metrics
  • The three Rent Function methods
  • Logic Functions and Arrays
  • Multi-let Cash Flows
  • Multiple and Period Varying Growth Rates

Retail Property Rent Functions

  • Common Retail Property Lease Covenants
  • Retail Tenancy Schedules
  • Zone A calculations
  • Turnover, affordability ratios and rental capture
  • Rental Growth, inflation and fixed rent
  • Rent Functions and Rent Projection

Analysing the Tenancy Schedule

  • Hypothetical study of ‘The Galleries’ Shopping Centre
  • Unit Plan and Micro Location
  • Using Excel as a database and linking to external data sources
  • Data visualisation methods
  • The Bayfield Retail Quilt (Tenant Mix Analysis)
  • Lease Expiry Profiles and Event Analysis

Round up and Conclusions of Day One

Shopping Centre Portfolio Case Study

  • Choosing the Retailer Classification
  • Cross Referencing Consumer Classification
  • Completing the Tenancy Schedule
  • Generating Typologies from tenancy schedules

Rent Functions for Shopping Centres

  • Breaking Complex rent functions from existing models
  • Planning the rent function
  • Events and Rents Table formulae
  • Full Rent Function

Full Project Cash Flow

  • Scenario Testing and Risk Analysis
  • Building a rent function for the case study shopping centre
  • Testing the rent function
  • Creating CAPEX and OPEX functions for the case study
  • Calculating IRR, NPV and other Investment Metrics
  • Testing the IRR for errors

Footfall and Performance Metrics

  • Destination capacity calculations
  • Footfall Signatures
  • Peak hour performance
  • Performance Metrics

Round up and Conclusions of Day Two

Included With Course

  • Post-Course Support
    • Two months of Questions and Answers.
    • One year of support is available for an additional fee – Request for more information.*
  • CPD Accredited Certificate & LinkedIn Proficiency Badge
  • Online Learning Platform access
    • Course Manual – Digital
    • Course Files
    • Further Learning Resources (Reading, Files, Videos)
  • Hard-copy Course Manual* If purchased separately
    * Included with In-Person Booking.

In partnership with

Course Details

Pricing – Public Course

In-Person: £1,500 + VAT
Virtual: £1,250 +VAT
Upcoming Dates – Public Course Dates

Number of days: Two days
Course type: Financial Modelling
Course level: 
Pre-requisite: Real Estate Analyst
CPD Hours: 15

Are you currently studying?

How to Book

Course Bookings:

Jacob Noble
[email protected]

Samuel Musgrave
[email protected]

Course Delivery & Administration:

Emma Wilson
[email protected]

Want to know more?