Introducing CRE Valuation

Learn how to value commercial properties step-by-step using the Income, Sales Comparison, and Cost approaches.


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Understanding valuation is fundamental to every real estate decision, whether you’re an investor, broker, developer, lender, or analyst. In this course, you’ll learn the frameworks valuation professionals use to determine property value, cut through the jargon, and see exactly how to apply each approach with real-world case studies.

By the end, you’ll know how to value commercial properties with confidence and clearly understand the methods professional appraisers use in their reports.

What Would Learning CRE Valuation Do For You?


By the end of this course, you’ll be able to:

  • Speak the language of valuation with clarity
  • Apply all three industry-standard valuation approaches
  • Build and interpret proformas with confidence
  • Estimate and apply cap rates using multiple techniques
  • Perform discounted cash flow analysis for real properties
  • Distinguish between market value and investment value
  • Compare levered and unlevered cash flows
  • Reconcile multiple approaches into a defensible final value

Whether you’re negotiating, underwriting, or advising, you’ll have the tools and frameworks to back up your conclusions with industry-standard methods.

What is CRE Valuation?


CRE Valuation is an online, interactive, video-based course that teaches you how to determine the value of any commercial property using the three industry-standard approaches: Income, Sales Comparison, and Cost.

Whether you’re brand new to valuation or an experienced professional who wants to sharpen your skills, this course will give you a clear framework and a deep intuition for how value is determined in commercial real estate.

The training is released in 8 separate modules and consists of easy-to-follow videos, done-for-you templates, worksheets, and step-by-step case studies. All of the training is online, contained in the private members-only site.

During the course, you’ll learn the role of the proforma, take deep dives into each valuation approach, and work through real-world case studies, including both direct capitalization and discounted cash flow analysis. You will also learn how to view valuation from two different perspectives: market value, which reflects what a typical buyer would pay, and investment value, which reflects what a specific investor is willing to pay based on their return requirements. By the end, you’ll know how to apply each method and reconcile them into a defensible final value.

Plus, you’re a student for life. You can retake the program for free for as long as the program exists.

Who Should Take This Course?


This course is designed for:

  • Investors evaluating deals
  • Brokers advising clients
  • Analysts building financial models
  • Developers testing project feasibility
  • Lenders and underwriters assessing collateral value
  • Anyone who wants a clear, structured way to understand what a property is worth

No advanced math background is required, just a working knowledge of commercial real estate.

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Your CRE Valuation Course Includes:



Module 1: Introduction & Overview
  • Who this course is for
  • Core learning objectives
  • How the course is structured
  • Key limitations of valuation (data, subjectivity, proformas)
Module 2: Key Terms & Concepts
  • Different types of value
  • How value varies by perspective
  • The three approaches to value: income, sales comparison, cost
  • Key concepts: stabilized vs. non-stabilized income, highest & best use
  • Main drivers of property value
  • Common valuation tools
Module 3: Proforma Basics
  • Why the proforma is essential in CRE valuation
  • Residential vs. commercial real estate differences
  • Simple definition: projected income and expenses
  • Three main components: income, expenses, cash flow
  • Key line items: potential gross income, vacancy, effective gross income, NOI
  • How assumptions (rent growth, vacancy, expenses, sales price) shape multi-year projections
  • Connection between the proforma and valuation methods
Module 4: The Income Approach
  • The most widely used method for income-producing properties
  • Difference between market value and investment value
  • Direct Capitalization: capitalize NOI using market-derived rates (comps, surveys, band of investment)
  • Discounted Cash Flow (DCF): forecast multi-year cash flows, apply discount rates, and estimate terminal cap rate/reversion value.
  • How appraisers use DCF for market value, and investors use it for investment value
  • Step-by-step examples of both techniques
  • Limitations of the income approach and how to mitigate them
Module 5: The Sales Comparison Approach
  • How to value property using recent comparable sales
  • Applicability and limitations of the approach
  • The five-step process: research, verify, select units of comparison, adjust, reconcile
  • How to make and justify adjustments for market conditions and property features
  • Sources for comparable data: public records, subscription services, appraiser databases
  • Example walkthrough showing how comps lead to a final value
Module 6: The Cost Approach
  • Valuing property based on replacement or reproduction cost
  • When the cost approach is most applicable
  • Difference between replacement cost vs. reproduction cost
  • Estimating land value, improvement costs, and entrepreneurial incentive
  • Adjusting for depreciation, ownership type, and rent-up costs
  • Example showing how cost estimates compare to other approaches
Case Study 1: Warehouse Valuation
  • Apply all three valuation approaches to a warehouse example
  • Sales Comparison with adjustments for comps
  • Income Approach using Direct Capitalization
  • Cost Approach with land and improvement analysis
  • Assign weights and reconcile approaches into a final conclusion
Case Study 2: Office Building Valuation
  • Reinforce the Sales Comparison Approach with new comps
  • Build a full 10-year DCF model for an office building
  • Project income, expenses, and sale assumptions in a proforma
  • Discount future cash flows to present value using a selected discount rate
  • Sanity check assumptions like terminal cap rates and appreciation
  • Reconcile results from Sales Comparison and DCF to a final value

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I have to compliment your company on clearly explaining valuation concepts to me. To put this into context, I asked my professor in my investment class last week if he knew of a way to value an income property using discounted cash flow analysis. Long story short…you guys are smarter than my professor. THANKS PropertyMetrics! “ Jonathan Torres | College Student
I want you to know how much I appreciate PropertyMetrics. As a 30 year real estate attorney focusing primarily on commercial leasing and purchase and sale of commercial properties, it is extremely helpful to see the principles I have learned and used for so many years explained so clearly. Jon K. Ladd | Business and Real Estate Law Group

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