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Analyzing Operating Expenses

Analyzing Operating Expenses

About this course

This online course is designed to help you better estimate operating expenses on commercial real estate. You’ll review suggested methods for improving analysis of operating expenses and explore available resources to forecast expenses. Expense categories are presented with in-depth analysis, as well as a review of characteristics of operating expenses. You will work three case studies to provide practical insight into the expense analysis process. This seminar is designed to benefit commercial appraisers and property analysts of various skill and experience levels. All appraisers and analysts, experienced or otherwise, can profit from the enhanced awareness that appropriately forecasting operating expenses can have on preparing supportable estimates of value.

What you’ll learn

  • Identify key operating expense questions to ask owners/managers to better understand variations in expenses.    
  • Explore a variety of expense information sources.    
  • Review the need to analyze historical property expenses.    
  • Review various expense categories.    
  • Explore the concepts of operating expenses, capital expenses, and non-recurring expenses and how these expenses should be analyzed.

Course curriculum

  • Introduction
  • Module 1: Overview of Operating Expenses
  • Module 2: Information Sources and Expense Categories
  • Module 3: Real Estate Tax Expense Analysis
  • Module 4: Insurance Expense Analysis and Case Study 1
  • Module 5: Variable Expense Analysis
  • Module 6: Case Study 2 - Apartment Complex
  • Module 7: Other Expense Analysis and Case Study 3
  • Conclusion

Course Provider

Appraisal Institute (AI)
Appraisal Institute (AI)

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