Constructing a But-For World… for an Entire Market
In several recent engagements, Grayslake was tasked with evaluating the market-wide impact of a broad-reaching governmental policy change. This challenge is unique in that there are countless factors that must be taken into consideration when constructing a but-for world at the market level. This stands in stark contrast to the relatively straightforward but-for world that is typical […]
The Invisible Engine of Real Estate Value: How Tenant Credit Influences Property Values
In commercial real estate, the lease functions as the engine that drives value. Rents traditionally reflect a wide range of factors, such as location, economic conditions, and interest rates. One factor, however, is routinely underappreciated by even the most sophisticated market participants: the financial strength of the entity signing the lease. Our recent work compared […]
Same Market, Different Answer: How Geography and Concessions Hide the True Story in Lease-Up Disputes
At Grayslake Advisors, much of our work involves stress-testing the market data that experts and counterparties bring into disputes. The insights below cover two of the places the cited number most often fails to describe the property it is being applied to.
The Headline Number That Misses the Point: Why Net Absorption Falls Short in CRE Disputes
The concept of lease-up and stabilization is the source of many recurring questions in commercial real estate disputes. Was the developer’s projected lease-up timeline reasonable when it was made? Did market conditions explain why the building took longer to fill than the pro forma anticipated? What would the property have earned if not for the […]