The Importance of Looking Beyond Standard Real Estate Valuation Metrics

Often market participants (investment managers, limited partners, consultants, etc.) compare discount rates and terminal cap rates across assets and funds, but these metrics can’t be weighed in isolation from the numerous other discounted cash flow (“DCF”) inputs. Several inputs are often overlooked and can materially influence the risk profile of the cash flows and resulting value.

In this white paper, we explore the importance looking beyond standard valuation metrics. We provide real world examples along with expert perspective on the best approach for determining a reasonable and defensible value.