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What is scenario analysis?

Changing several assumptions together to simulate a coherent future (bull, base, or bear) because variables such as rent growth, vacancy, and exit cap rate tend to move together in the real world.

Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.

Related terms

From the free Real Estate Finance course by Devon Coombs, CPA, MBA.