Section 2.2.4 introduces the present value of a constant-growth annuity in arrears, where cash flows occur at regular intervals but increase or decrease at a steady rate over time. Unlike a level annuity, each payment is a fixed multiple of the previous one, making this a more flexible model for real-world real estate income that grows with rent escalations or inflation adjustments. Using the geometric series formula, we derive a simplified way to value these growing cash flow streams. This framework is especially useful for modeling long-term leases and income-producing properties with predictable growth patterns. This episode was developed and produced by Nicole Jordan and Allie Garmon. Content was generated using Wondercraft AI.

© 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 

This episode includes AI-generated content.