About This Course
Understanding the full financial impact of a lease goes beyond base rent. Businesses must calculate Effective Rent and Total Lease Commitment to assess cost distribution over time and make informed leasing decisions. These metrics help tenants and landlords evaluate incentives, escalations, and overall lease expenses.
You'll learn how Effective Rent accounts for rental costs after factoring in incentives and rent-free periods, while Total Lease Commitment includes all financial obligations, such as operating expenses and pass-through costs. You'll also explore how financial modeling plays a role in lease cash flows, Net Present Value (NPV), and cost comparisons, helping businesses optimize leasing strategies.
By the end of this course, you will:
- Understand how to calculate Effective Rent and Total Lease Commitment.
- Learn how financial modeling impacts lease decision-making.
- Compare lease options using Net Present Value (NPV) and cost analysis.
- Evaluate tenant incentives, rent abatements, and capital expenditures.
- Structure lease cash flows in Excel for accurate financial forecasting.
Topics Covered:
- Glossary of Terms
- Understanding Rental Structures
- Importance of Financial Modeling for Lease Decision-Making
- Comparing Lease Options in Different Locations
- Negotiating Tenant Incentives with Landlords
- Rent Abatements, Incentives, and Concessions
- Calculating Effective Rent and Total Lease Commitment
- Tenant Improvement Allowances and CapEx
- Operating Expenses and Pass-Through Costs
- Structuring Lease Cash Flows in Excel
- NPV and Cost Comparison of Lease Options
- Total Occupancy Cost Over Time
- Structuring Renewal and Expansion Options in Financial Models
Course Duration: Approximately 40 minutes
Access to Course: 14 days from date of purchase
