Valuation Advisory Services
Valuation of the commercial real estate sector is the primary service line.
Advisory Services for the commercial real estate sector are the secondary service lines and are divided into six advisory service groups:
- Economic Research
- Feasibility Analysis
- Investment Research
- Litigation Support
- Market Analysis
- Property Tax
Academically, from a business perspective, real estate is viewed as a sub-discipline of finance and finance as a sub-discipline of economics. The classical economists, such as Adam Smith, referred to economics as “political economy” linking economic systems to political systems. Economics and finance are also seen as far more established (credible) academic disciplines than real estate, which was considered “trade school” as recently as the 1950s. In the 1950s two academic studies recommended that real estate be dropped from university curriculums. The National Bureau of ECONOMIC RESEARCH is responsible, among other things, for determining the start and end of economic recessions.
“Research” emphasizes a core competency and market rents and market prices are “economic” considerations and other “economic” applications can be closely aligned.
Both “feasibility” and “analysis” represent core competencies.
The CFA (Chartered Financial Analyst) professional designation is awarded by the CFA Institute, formerly known as the Association for INVESTMENT Management and RESEARCH (AIMR). The CFA is gaining increasing worldwide respect by debt analysts, equity analysts, financial analysts, securities analysts who perform valuations as well as investment and portfolio mangers. Both “investment” (income capitalization analysis from direct capitalization to discounted cash flow analysis and beyond) and “analysis” represent core competencies.
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