About
Is it Time to Rethink How Commercial Real Estate is Valued?
ReturnSuite is on a mission to create a powerful way to model and manage portfolios and share the results between stakeholders. We believe the risk-adjusted value approach alongside traditional discounted cash flows are the best way to value real estate and aim to make these powerful tools available to everyone.
Our Story
How could increasing profit by 40% not lead to higher valuations and better lending terms?
Through a down market and then the Covid-19 pandemic, the CRE company I co-founded was able to earn superior returns across the entire portfolio by increasing our flexible leasing footprint - yet our values were unchanged and our financing looked more like car loans than traditional mortgages.
Everyone pointed to the increased risk in flexible leasing, but that felt intuitively wrong and ignored the results we were achieving. I decided to do a deep dive into the question of valuing flexible real estate - producing a video and dedicating my master's dissertation to the topic.
Here’s the quick summary: The tools used in real estate valuation are built around very basic financial theories. While bond and equity valuation practices have evolved, real estate valuation methodologies became a sort of Lost World. As long as real estate remained separate from the outside world, supplied by long-term leases, the traditional tools for valuing commercial real estate could thrive.
But the outside world has arrived and the traditional financial models are failing. With cash flows becoming increasingly volatile, the old asset management tools no longer work - they are blind to the risks in the modern real estate market.
We created ReturnSuite to solve this issue. By bringing more sophisticated financial tools into the real estate industry, our software allows you to maximize your returns while fully understanding your risks.
With ReturnSuite, you will gain important insights and be able to easily communicate your asset management strategy, forecasts, budgets and results with all your key stakeholders.