Commercial Property Contracts and Financial Modelling from edX

Owning, investing in, or developing commercial property comes with various legal and financial obligations. Having a clear understanding of what these are and how to leverage them is key to the successful running and long-term value of your commercial property.

In this course, you'll learn to navigate the specific contracts, lease agreements, and loan agreements related to commercial property. You'll then shift from legal to finance as you explore how amortization functions in commercial property, how to build cash flows, and how to use NPV and IRR calculations to measure profitability. You'll walk away with an understanding of the legalities of commercial property and how to use financial modeling to forecast returns.

What you'll learn

Understand contracts related to commercial property.
Assess lease and loan agreements in commercial property.
Use an amortization schedule for commercial property loan administration.
Analyze a financial model for a commercial property investment.
Recommend a commercial property investment opportunity based on an NPV and IRR calculation.

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

It provides a comprehensive overview of legal and financial implications for commercial property stakeholders

Taught by recognized expert Dr. Saul Nurick, offering credibility to the course content

Covers essential legal aspects of commercial property, ensuring learners have a strong foundation in this area

Helps learners understand financial modeling for commercial property investments, a valuable skill for decision-making

Provides practical knowledge on assessing lease and loan agreements, enabling learners to make informed decisions

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Commercial Property Contracts and Financial Modelling with these activities:

Review: Real Estate Finance and Investments

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Get exposure to the principles and practices of real estate finance and investments for a better foundation on the topic.

View Real Estate Finance and Investments 11th... on Amazon

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Read Chapters 1-4 to become familiar with the real estate industry and framework of real estate finance.
Work through the end-of-chapter questions to test your comprehension.

Review Contracts Related to Commercial Property

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Refresh your understanding of the key concepts and provisions in commercial property contracts to prepare for the course.

Browse courses on Contracts

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Review the course syllabus and identify key terms related to contracts.
Read relevant sections in a commercial property contract sample.

Review property law

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Refresher on the foundational principles of property law will prepare you to jump into the more specific details of commercial property law.

Browse courses on Property Law

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Review your notes or textbook from previous property law courses.
Complete practice questions or quizzes to test your understanding.
Attend a workshop or seminar on property law.

Eight other activities

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Collection of Resources on Commercial Property Legal and Financial Considerations

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Gather and organize helpful resources to complement the course materials and support your learning.

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Search for articles, websites, and videos on commercial property legal and financial considerations.
Bookmark or save relevant resources for future reference.

Practice Amortization Calculations for Commercial Loans

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Strengthen your understanding of amortization calculations by completing practice problems.

Browse courses on Amortization

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Set up amortization schedules for different loan scenarios.
Calculate monthly payments and outstanding balances.

Analyze Lease Agreements

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Carefully reviewing and analyzing sample lease agreements helps students grasp the key clauses and provisions, strengthening their understanding of legal obligations.

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Obtain sample lease agreements for commercial properties.
Read and identify the main sections of the lease (e.g., parties, term, rent, use restrictions).
Analyze specific clauses, such as those related to rent escalation, subletting, and termination.
Summarize the key terms and provisions of the lease.

Discussion on Lease Agreements for Commercial Property

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Engage in peer discussions to explore different types of lease agreements and their implications for commercial property investments.

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Review the course materials on lease agreements.
Join an online discussion forum or study group to discuss lease agreements.
Share insights and perspectives with peers.

Calculate Amortization Schedule

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Creating an amortization schedule helps clarify how loan payments are allocated over time, reinforcing the concepts of principal and interest.

Browse courses on Commercial Property

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Gather loan details (amount, interest rate, term).
Calculate the monthly payment using the loan formula.
Create a table with columns for month, beginning balance, payment, interest, principal, ending balance.
Populate the table row by row, updating the beginning balance with the ending balance from the previous row.

Amortization Function in Commercial Real Estate Loans

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Deepen your understanding of amortization schedules utilized in commercial real estate loans.

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Watch the video tutorial on amortization.
Complete the practice exercises in the accompanying workbook.

Cash Flow Analysis for Commercial Property Investment

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Develop your financial modeling abilities by building a cash flow analysis model for a commercial property.

Browse courses on Financial Modeling

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Gather relevant financial data for the property.
Build a cash flow statement using a spreadsheet.
Create a graphical representation of the cash flow.

NPV and IRR Analysis for Commercial Property

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Enhance your financial analysis skills by calculating NPV and IRR to determine the profitability of a commercial property investment.

Browse courses on NPV

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Gather financial data for the property and the investment.
Calculate the NPV and IRR using a spreadsheet or calculator.
Interpret the results and draw conclusions.

Career center

Learners who complete Commercial Property Contracts and Financial Modelling will develop knowledge and skills that may be useful to these careers:

Real Estate Analyst

A Real Estate Analyst estimates the value of all types of real estate property. You might also create an amortization schedule to calculate how to repay a loan. It is common for this role to require an advanced degree. If you want to work as a Real Estate Analyst, consider taking this course to understand legal and financial obligations related to commercial property.

See salaries and explore the career path for Real Estate Analyst

Mortgage Loan Officer

Mortgage Loan Officers help people who want to purchase real estate to get the funding they need. You will often administer loan agreements on commercial property. If you want to work as a Mortgage Loan Officer, consider taking this course to learn about loan agreements, amortization, and financial modeling for commercial property.

See salaries and explore the career path for Mortgage Loan Officer

Real Estate Agent

Real Estate Agents represent buyers and sellers of real estate. You might use this course to better serve your clients who are buying or selling commercial property. This could give you a competitive edge over other agents. You should know that this course may be useful whether you are looking to get into real estate or you want to grow your business.

See salaries and explore the career path for Real Estate Agent

Property Manager

Property Managers oversee all aspects of commercial and residential properties. Understanding commercial property contracts, financial modeling, and lease agreements would be a major advantage in this role. This course may be useful if you want to work as a Property Manager.

See salaries and explore the career path for Property Manager

Commercial Lender

Commercial Lenders provide financial solutions to businesses. You will often review commercial property loan agreements, which can be complex. You should know that this course may be useful if you want to work as a Commercial Lender.

See salaries and explore the career path for Commercial Lender

Investment Banker

Investment Bankers help companies raise money. You may work with clients who are investing in commercial property. This course may be useful if you want to work as an Investment Banker because it will help you to better understand your client's needs.

See salaries and explore the career path for Investment Banker

Financial Analyst

Financial Analysts help businesses make financial decisions. You could work with clients who are investing in commercial property. This course may be especially helpful for you if you want to work with clients who are buying or selling commercial property.

See salaries and explore the career path for Financial Analyst

Real Estate Developer

Real Estate Developers identify and develop land for commercial and residential purposes. A solid understanding of commercial property contracts and financial modeling is critical. This course may be helpful if you want to work as a Real Estate Developer.

See salaries and explore the career path for Real Estate Developer

Underwriter

Underwriters assess and manage risk for insurance companies. You will review loan agreements for commercial property as part of your job. If you want to work as an Underwriter, consider taking this course to build a foundation in commercial property.

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Asset Manager

Asset Managers oversee investments. You may work with clients who invest in commercial property. You may also build financial models. This course may be useful if you want to work as an Asset Manager.

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Auditor

Auditors examine financial records to ensure accuracy. Understanding commercial property contracts, financial modeling, and lease agreements would be an advantage in this role. This course may be useful if you want to work as an Auditor.

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Bankruptcy Attorney

Bankruptcy Attorneys help clients who are going through bankruptcy. You may work with clients who are selling commercial property. This course may be useful if you want to work as a Bankruptcy Attorney.

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Tax Attorney

Tax Attorneys help clients with tax issues. You may work with clients who are buying or selling commercial property. If you want to work as a Tax Attorney, consider taking this course to learn about commercial property contracts and financial modeling.

See salaries and explore the career path for Tax Attorney

Real Estate Appraiser

Real Estate Appraisers determine the value of real estate properties. Understanding commercial property contracts, financial modeling, and lease agreements would be an advantage in this role. This course may be useful if you want to work as a Real Estate Appraiser.

See salaries and explore the career path for Real Estate Appraiser

Commercial Real Estate Broker

Commercial Real Estate Brokers facilitate the sale and lease of commercial properties. Understanding commercial property contracts, financial modeling, and lease agreements would be an advantage in this role. This course may be useful if you want to work as a Commercial Real Estate Broker.

See salaries and explore the career path for Commercial Real Estate Broker

Commercial Property Contracts and Financial Modelling

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