Sunday, November 15, 2009

Quiz 4 Grades

Quiz 4 grades have been posted to BlackBoard.

Tuesday, November 3, 2009

BlackBoard Updated

Exam 2 scores have been updated on BlackBoard.  Also, please ignore any "points" information on BlackBoard.  You final course grade is calculated according to the formula in the syllabus.  I just use BlackBoard to report your percentage grades.

Online Assignment for Thursday, November 5th

The following is an online assignment for Thursday, November 5th. I will be in San Francisco attending the Urban Land Institute/UrbanPlan annual meetings and we will not meet formally for class.  In lieu of class, please complete the following on-line assignments (the links below are found on our class website).



Assignment 1: Please complete the cost approach problems from the "Other Materials for Appraisal" pdf.

           Other Materials for Appraisal (.pdf)

After trying the problems, please proceed to the clip below for the solutions.

           Video/Audio Clip for Appraisal Crossword Puzzle and Other Materials for Appraisal (1 hour, 27 minutes)

           Cost Approach Problems Solutions (.pdf)

Assignment 2: Please complete the case study below.  Bring your solution to next class, we will go over the solution together.
           Video/Audio Clip for the Case of the Botched Appraisal Instructions (15 minutes)

           Case of the Botched Appraisal Instructions
                    Original Appraisal
                    Worksheet

Optional assignment: View the review clips posted for the final exam coving the cost approach, income approach, and final reconciliation.

Cost Approach Video/Audio Clip (38 min)


Income Approach Part 1 Audio/Video Clip (wmv file right click and save to desktop to download)


Income Approach Part 2 Audio/Video Clip (wmv file right click and save to desktop to download)


Income Approach Part 3 Audio/Video Clip (wmv file right click and save to desktop to download)


Income Approach Part 4 Audio/Video Clip (wmv file right click and save to desktop to download)


Income Approach Part 5 Audio/Video Clip (wmv file right click and save to desktop to download)


Friday, October 30, 2009

Exam 2 Results

Exam 2 scores and exam descriptive statistics have been posted to BlackBoard.  We will review Exam 2 during the first 10-minutes of Tuesday's class.

Wednesday, October 28, 2009

Chapter 16 Notes Posted

The link to the Chapter 16 class notes has been fixed.  Don't forget, Chapter 16 is on Exam 2.

Tuesday, October 27, 2009

Exam 2 Reminder

Exam 2 is this Thursday and will cover chapters 9, 12, 13, 14, 15, and 16.  Please note that Chapter 16 was left off the syllabus under the Exam 2 material.  The format will be primarily multiple-choice.

Just a heads up, the final exam will be primarily short-answer and calculation problems with some multiple-choice.  (I like to mix it up a bit.)

Thursday, October 22, 2009

Exam 2 Review Audio/Video Clips Posted to Class Website

I have posted 3.5-hours of audio/video clips to help you with the exam 2 material: market analysis, highest & best use, sales comparison approach, and site valuation.  Links to these audio/video clips have been posted on our class website.

Wednesday, October 21, 2009

Quiz 3 Scores

Quiz 3 scores have been posted to BlackBoard.

Wednesday, October 14, 2009

Quiz 2 Grades

Quiz 2 grades have been posted to BlackBoard.

Wednesday, October 7, 2009

Give this one a try before Thursday's class...

Employment growth in total market area:                  5,000 over the next 4 years
PE ratio:                                  2.75
Average household income:    $40,000
Percentage of spending:          30% taxes; 42% nonretail; 5%
 savings; balance retail
            Average household size:         3.10 persons
            Average sales PSF:                 $235
            Primary market leakage:          24% (Compute the leakage on the sf of
 primary retail space needed)
            Primary market capture:          10% of primary retail sf (Do not apply the
leakage to the secondary)
            Frictional vacancy:                  7%
            Proposed supply in market:     93% current occupancy; 210,000 sf proposed

1.                  What is the projected growth in population per year in the market?

2.                  What is the projected growth in total households over the next 4 years?

3.                  How much total space in the market area will be demanded as a result of the total growth in this market area before frictional vacancy?

4.                  What is the residual demand for retail over the next 4 years in this market?

Thursday, October 1, 2009

Notes Posted on FIN 181 Website

If you visit the class website (click here), you will now find the class notes posted.  Please download these PowerPoint (ppt) files and print them out.  Please save paper and print 2 or 3 to a page (see me if you have any trouble with the printing options).

Please note that I will bring today's notes on Chapter 9 Market Analysis to class for you.

Retail Market Analysis Solution

Solution:
1. Total income = 11,000 x $35,000 = $385,000,000
2. Retail sales potential = $385,000,000 x (1 - 25% - 45%) = $115,500,000
3. Retail sales by subject type = $115,500,000 x 20% = $23,100,000
4. Sales retention = $23,100,000 x 80% = $18,480,000
5. Primary sales sf required = $18,480,000 / $250 psf = 73,920 sf
6. Plus: Secondary sales = 73,920 x 1.15 = 85,008 sf
7. Plus: Frictional vacancy = 85,008 / (1 – 5%) = 89,482 sf
8. Less: Existing, U.C., propose = 250,000x20% + 50,000x25% + 40,000x15% = 68,500 sf
9. Shortage of space (next 5 years) = 89,482 sf – 68,500 = 20,982 sf

Office Example Solution

Solutions:
1. Total employment growth = 20,000 / 1.75 = 11,429
2. Total occupying office = 11,429 x 20% = 2,286 persons
3. Office demand = 2,286 persons x 225 sf per person = 514,350 sf
4. Capture in subject market = 514,350 x 25% = 128,588 sf
5. Total demand for Class B in market = 128,588 sf x 50% / (1-5%) = 67,678 sf
6. Less: Existing, UC, proposed = (50,000 sf x 20% vacant) + 25,000 sf = 35,000 sf
7. Residual demand = 67,678 – 35,000 = 32,678 sf needed

Variations:
1. There may not be a frictional vacancy given. Compute demand without making up a vacancy.

Wednesday, September 30, 2009

Exam 1 Grades Posted to BlackBoard

Please check your BlackBoard account for your Exam 1 grade.

Tuesday, September 29, 2009

FIN 181 Valuation Blog Post Extra Credit Option

This is entirely at your option but I will give all FIN 181 students an opportunity to score 0, 1, 2 or 3 (the max being reserved for very high quality research pieces) percentage points on your final class grade.  The extra credit assignment is to research a real estate valuation topic and author an original post on our class blog www.fin181.blogspot.com.

This optional assignment is a research paper, not an opinion or thought piece, and you must cite all your work (and, of course, absolutely no plagiarism).  The number of points you receive will depend upon the quality of your blog post (including the amount of research, organization, writing, and, yes, spelling and grammar).   [I have given 0 points for half hearted attempts.  Don't attempt this option unless you are serious about posting good work on the Internet.  Anyone will be able to access your post including fellow students, faculty, family, and prospective employers!]

This option is open to individuals (no groups for this one).  For samples of past student blog posts, please visit www.gazarian.info.  Examples of appropriate topics include the follow:
  • valuation of water rights
  • valuation of special use properties
  • valuation issues in agricultural land
  • valuation of 'green' features
  • valuation ethics
  • valuation based indexes (such as NCREIF, IPD)
  • valuation and issue in the secondary mortgage market
  • mass valuation techniques
  • and many, many others...
You are welcome to discuss your general topic idea with me before/after class or via e-mail.  I will also grant you posting rights to the class blog.  Exceptional posts will also be posted to www.gazarian.info.

DEADLINE FOR ALL POSTS: December 6th, but ideally I would like to have the posts spread out over the course of the semester.  For any credit consideration, the post must be made on or before December 6, 2009.

Saturday, September 26, 2009

Appraisal Exam 1 this Tuesday

Exam 1 is this Tuesday.  The exam will cover chapters 1, 2, 3, 4, 5, 6, 7, 8, 10, and part of 11.  The exam format is multiple-choice and short answer/essay style questions.

Monday, September 21, 2009

Quiz 1 Score Posted on BlackBoard

Quiz 1 scores (in %) have been posted to BlackBoard.  Let me know tomorrow in class if you have any trouble accessing your grade.

Thursday, September 10, 2009

Quizzes

Don't forget about the quizzes. If we will get 5 or 6 quizzes in during this semester, we will need to have an unannounced quiz soon.

Monday, September 7, 2009

Books Should be at Bookstore

A couple students mentioned last week that the textbook and workbook were available at the campus bookstore.