Can Your Appraiser Perform a Discounted Cash Flow Analysis?
Any commercial or industrial appraiser should know how to properly evaluate your multi-tenant building. Make sure they know how before signing any type of contract with them. If you have a multi-tenanted building with existing leases , a discounted cash flow analysis is required in most cases. The same may also be true even if you have a single tenanted building with a existing lease.
A discounted cash flow analysis is the process where all future cash flows are estimated and discounted to derive their present values. When you have an existing lease, this agreement must be considered until it expires, after which a market value will be applied for the remainder of the investment horizon.
Talk to the appraiser before hand and make sure that they know how to property perform a discounted cash flow analysis.