Chapter 11 Introduction – The Discount Rate: How Investors Measure Risk and Return

Lily and Alex explain how the discount rate connects projected property cash flows to investor expectations. They introduce the risk-free rate and risk premium, clarify the property-before-tax perspective, and preview the chapter’s methods for estimating discount rates and exit cap rates, along with common DCF pitfalls. Produced by Alli Garmon and Nicole Jordan. Audio generated by Thomas Autino and WondercraftAI. © 2026 CRE Explained Podcast Team. Based on Commercial Real Estate Analysis for Investment, Finance, and Development (4th Edition) by David M. Geltner, Norman G. Miller, Alex van de Minne, Piet Eichholtz, Thies Lindenthal, and Lily Shen. Developed through Clemson University Creative Inquiry (CI) 4980, under the supervision of Dr. Lily Shen. Reference Material: Commercial Real Estate Resources | CREBook.net