Given the real estate commitment will be a significant expense, we understand the financials must be evaluated carefully and accurately; that’s why we run financial analysis for every option and customize models based on the specific parameters set forth by the client.
Some of the most complex financial analysis comes in leasing-versus-purchasing scenarios, in which there are countless intangibles to account for, such as: downtime, construction estimates, cap rates, on-going operating expenses, on-going maintenance, rental rate projections, and profile of the next buyer. Distilling these details into a readable and relatively simple format for a client is really beneficial, and can help them quickly determine the feasibility of a purchase. Often times, the cash required to be tied-up in a property quickly adds up, and while a couple million dollars is a drop-in-the-bucket for a pension fund, typically Clarefield’s clientele view that as a heavy load to tie-up for several years. Quickly distilling the numbers and showing clients the roadmap for feasibility is important to avoid fruitless projects and to help the client reach their desired result in a timely fashion.