Section 2.2.5 introduces the constant-growth perpetuity, an infinite stream of cash flows where each payment grows at a fixed rate relative to the previous one. This extends earlier valuation methods by applying the geometric series formula to a never-ending sequence of growing payments, making it especially useful for long-lived real estate assets. It is commonly used to value properties with stable income and consistent rent growth, where cash flows are expected to continue indefinitely. 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.