With the rise of Space-as-a-Service, is the current real estate valuation model applicable any more? Are the current valuation tools flexible enough for flexible real estate?

Commercial real estate values have been built on top of safe & predictable leases, but as real estate becomes more like an operating business, the current valuation methods no longer work.

So what is the solution? I propose we borrow tools used in the pharmaceutical and financial industries. The Expected Value method better fits the new, variable cash flows being produced by modern real estate operators like WeWork. Valuers should also begin to add measures of risk such as Value-at-Risk (VaR) to valuations.

Connect With Me: https://www.linkedin.com/in/sam-gamble-cloudworks/ https://twitter.com/Sam_CloudWorks

Sounds Clips Ryan Simonetti (Convene) on the Fifth Wall Podcast. Panel: Real Estate as a Service. Jamie Hodari (Industrious) on the Fifth Wall Podcast. Annie Rinker (Hines) on the #WorkBold Podcast. Season 2, Episode 5. Dror Poleg on the #WorkBold podcast. Season 1, episode 10.