Fall/Winter 1984, Vol 9, No 2

Abstract: This article is a state of the art look at the problem of measuring real estate returns. The analytical model utilizes a sophisticated spread sheet computer program, with step-by-step discussion of how each variable is treated. Sensitivity analysis is used to measure the degree to which change in variables (e.g., construction cost; rental levels; expense; etc.) will impact total return. Returns are calculated in both real and nominal terms, for both the developer and the investor.