April 2018
Intermediate to advanced
256 pages
7h 35m
English
Chapters 11 and 12 introduced the basic economics of real estate development. They covered the essential elements of investments in development projects: land commitment, time‐to‐build, forward purchase, leverage, uncertainty, and flexibility. They also showed how flexibility can add value to such projects. But the example in Chapter 12, though intuitive, was quite simplistic. We need to see how to evaluate flexibility to manage uncertainty in more realistic situations.
This chapter introduces and explains a pro forma spreadsheet model of a realistic development project, which will enable us to explore and estimate ...