Retail Property Appraisals

Day One

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

Day Two

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