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The Value of Options in CRE Restructuring

Established methods of determining value include computing the present value of observable cash flows and inferring value from other observable valuations — otherwise known as “relative” valuation or “comparables.”[1] But when observable cash flows or comparable valuations are not available, a third approach is to value optionality. In real estate, options abound, and it is worth thinking about how to analyze optionality in calculating value.

Co-Chairs Corner

ABI’s Real Estate Committee started off its 2025 webinar series with a bang, interviewing Brandon Svec with CoStar Group for a Commercial Real Estate Economic Outlook. Stay tuned for announcements regarding the section’s additional webinars still to come this year.