AboutMike Fortunato Expertise Can answer questions on all aspects of commercial real estate management, including lease administration, eviction issues, financial reporting and budgeting, asset valuation/enhancement, marketing & leasing, and site maintenance and repairs. 20+ years of real estate management.
Experience 20+ years in commercial management. Current own and operate property management company in southern California.
Question I work for a non-profit who received a portion of a land lease donation through a trust. Our portion generates $1776.60 monthly income and goes through 2044.
I can calculate the present value using some assumptions, but is there a premium or discount on the land lease present value?
Answer The only adjustment you might want to make is for an annual inflation factor for the period from now until 2044. Problem is, inflation is all over the map right now....in fact, the last few months the Consumer price index actually declined, signifying no inflation at all. Yet many are predicting hyper-inflation for future years due to all of the government actions, and the likelihood that the dollar will be devalued even more. Very difficult to predict at this point in time.
