disposition-strategy-engine

To decide whether to sell, hold, or refinance a commercial real estate asset, you evaluate the marginal return on current equity against alternative deployment opportunities. The analysis requires asset, debt, tax, and reinvestment inputs to generate a forward-looking, executable disposition plan.

Marginal return on equity in a CRE disposition analysis measures the current yield retained by holding an asset versus extracting and reinvesting capital elsewhere. It drives the three-path recommendation framework by quantifying the opportunity cost of not selling or refinancing.

You account for tax friction during a real estate disposition by inputting specific tax considerations alongside debt and reinvestment assumptions. This integrates capital gains impacts into the scenario analysis, ensuring the final disposition plan maximizes net risk-adjusted equity returns.

Yes, you can run a disposition scenario analysis for a 1031 exchange or distressed asset. The framework applies 15 scenario variants including value-add, sale-leasebacks, and distressed assets, providing cycle-positioning context and a buyer universe for each specific outcome.

You need inputs for asset details, debt characteristics, tax considerations, and reinvestment assumptions to generate a CRE disposition plan. Supplying these property and debt inputs produces a three-path recommendation with actionable metrics and scenario-specific supplements.

A three-path disposition framework may not be suitable when a CRE asset lacks clear alternative capital deployment opportunities or when tax and reinvestment inputs cannot be accurately projected. It requires forward-looking assumptions to deliver executable sell, hold, or refinance guidance.