NPV

NPV: Net Present Value in Commercial Real Estate

NPV: Net Present Value in Commercial Real Estate

Net present value, or NPV, is a financial metric that can help commercial real estate investors determine whether they're getting a certain return-- a 'target yield,' given the amount of their initial investment. Using the NPV equation, you can take a building's current net cash flows and your required rate of return, and determine what a building's value is to you, the investor, right now.