Commercial Real Estate Simulation

In the simulation, participants will:

• Analyze offering memorandums for potential property acquisitions.

• Build detailed financial models to project returns and assess deal feasibility.

• Actively bid on properties in a competitive auction environment.

• Negotiate terms with a simulated debt syndicate to secure financing.

• Make critical capital allocation decisions: acquire new assets, invest in existing properties, or divest.

• Manage portfolio performance, reacting to quarterly market updates and random events.

• Apply the core financial metrics and models used to underwrite commercial real estate investments.

• Evaluate the risk-return profile of different property types and capital structures.

• Structure a balanced commercial real estate portfolio aligned with an investment thesis.

• Articulate the impact of macroeconomic factors (interest rates, economic growth) on property values and investment decisions.

• Make strategic decisions regarding acquisition, asset management, and disposition to maximize long-term wealth.

• Function effectively within a team, assigning roles and making collective decisions under pressure.

1. Setup Teams are formed and receive initial capital. The simulation platform presents an initial market landscape with available properties, financing benchmarks, and economic indicators.

** 2. Analyze** Review new deal pipelines, property performance reports, and market news.

3. Decide Submit bids for properties, request financing, approve capital expenditures, and list properties for sale.

4. Execute The simulation engine processes all team decisions simultaneously, resolving auctions, financing, and market events.

5. Review Teams receive updated portfolio dashboards, P&L statements, and balance sheets, analyzing their performance to inform the next round.

6. Debrief The simulation culminates in a comprehensive review, comparing team strategies and outcomes, and linking the experience directly to core CRE finance principles.

• Who is this CRE simulation designed for? It is ideal for business school students (MBA, finance majors), corporate trainees in real estate firms, investment banks, pension funds, and professionals in related fields seeking to understand CRE investing.

• Do I need prior real estate experience to participate? No. The simulation is designed with guided tutorials and adjustable complexity. It is suitable for beginners to learn fundamentals, while offering advanced layers (like complex JV structures) to challenge experienced participants.

• What financial modeling skills are required? Basic proficiency in Excel is helpful. The simulation often includes integrated spreadsheet tools for DCF modeling, but core formulas and concepts are provided within the platform, making it a great way to learn modeling by doing.

• How long does the simulation typically run? Programs can be tailored from a condensed 4-hour workshop to a multi-week course module. A typical stand-alone simulation runs over 1-2 full days or several 3-hour sessions.

• Is this simulation focused on US or global real estate? The core financial principles are universal. The simulation uses a US-based market framework (familiar terms like 1031 exchanges), but the skills are directly transferable to global CRE markets.

• Can the simulation be customized for our company or university? Yes. We offer customization of case studies, property types, market data, and learning objectives to align with specific curriculum or corporate training goals. Contact us to discuss bespoke solutions.

• How does the simulation improve learning vs. traditional lectures? Learning is experiential and “sticky.” Participants learn by doing, making mistakes, and seeing immediate consequences in a competitive setting. This deepens understanding far more than passive lecture-based learning.

• The Internal Rate of Return or Net Present Value of the team’s portfolio at simulation end, measuring financial acumen and execution.

• Secondary assessment includes analysis of the team’s debt-to-equity ratio, portfolio diversification, and vacancy rates, demonstrating risk management.

• Teams may submit brief rationale for key acquisitions or exits, evaluated for analytical depth and strategic alignment. Individual contribution, teamwork, and role-specific performance.

• Pre- and Post-Simulation Quizzes: Gauge the concrete improvement in understanding of key terminologies and calculations.

• Final Debrief Presentation: Teams present their strategy, outcomes, and lessons learned, fostering synthesis and communication of complex financial results.