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DCF Valuation Part 2: DCF Valuation of Leases


  • ⏰ Viewing Time: 3h:52m

  • πŸ“Š Level: Intermediate

  • πŸ§‘β€πŸ« Educator: Phil Laney

  • 🌎 Region: UK / Europe

  • πŸ“œ Certificate: Score over 70% on the final quiz.


This is the second part of a 3-part series on DCF Investment Valuation for real estate. You should complete part 1 before enrolling in this course.

The concept of real estate valuation using DCF is straightforward. You value the income stream into the future, and hey presto, you have a value for your property. But the reality of lease structures, rent reviews, break clauses, and indexation makes projecting cash flows really challenging.

This course explores how to model common lease structures in Excel using DCF in order to determine a property value that includes break clauses, indexation, rent reviews, vacancy, and more.

Key Learning Outcomes

You are about to learn the essentials of how to build a real estate DCF valuation model in Excel from scratch in order to value a simple office real estate investment. By the end of this, you will be able to:

  1. Build a DCF model in Excel from scratch that can evaluate the impact on cash flows and the value of a range of common lease events.

  2. Evaluate the impact of rent reviews, indexation, break clauses, and finding new tenants (including agent fees, vacancy, vacant operating costs, etc.).

  3. Identify the key differences in cash flows between multi-tenanted and single-tenanted buildings, with a focus on differences in operating costs for the landlord.

Your Instructor

Phil Laney is a real estate private equity investor in Europe with over 15 years of experience, $4bn+ of transactions, and his own fund. To be a successful investor or developer, you need to know more than just skills. You need to know how, why, and when to use those skills. Phil is passionate about teaching this full spectrum.

Getting Started

  • To begin learning, simply click Enroll above and get started.

  • You don't have a set time to complete this. Go as fast or slow as you like.

  • Once you have completed the final quizzes successfully, you will be awarded a certificate, which we recommend you upload to Linkedin to evidence your continued professional development.


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