DCF Analysis

Discounted Cash Flow Analysis in Commercial Real Estate

Discounted Cash Flow Analysis in Commercial Real Estate

Discounted Cash Flow Analysis, or DCF analysis, is a method used to determine the current value of a set of cash flows using a predetermined discount rate. In practice, DCF analysis is often used to compare the potential return from a commercial real estate investment to the estimated return from another investment, such as a stock, mutual fund, private equity investment, or another piece of commercial real estate.