ABSTRACT
Chapter 8 provides clarity for the difference between for-sale and for-lease investment properties, and itemizes the various pathways to profit in for-sale investments. Highlighting this difference is the missing reversion in for-sale investment projects. The discounted sellout model is introduced and compared with the discounted cash flow valuation model. Various new performance metrics in for-sale projects is introduced. The discussion then turns to the Skyscraper’s Curse and then a hybrid for-lease and for-sale valuation scenario. The market vignette for chapter 8 centers on investor contemplation on the creation of a brand new for-sale scenario in a small town market.
