YOU ASK
How do I test a 50-basis-point increase in capitalization rates in Rockport VAL without changing my base assumptions?
propfessor.Companion exampleThe short answer
Create a Shock for Capitalization Rate, enter the adjustment in basis points, then apply it to the properties you want to test. A Shock changes the scenario calculation while keeping the underlying assumptions available.
Work through it
- Open SHOCKS, choose NEW SHOCK and name the case. Set In Use? to Yes for Capitalization Rate. Confirm the grouping and Applies to selections, then SAVE the setup.
- In the CAP RATE parameter grid, enter 50 where the unit is bps. That is a 0.50 percentage-point increase, not a 50% increase. Check the applicable rows and periods.
- Load the portfolio, confirm its version and scenario, and apply the saved Shock. Compare the valuation and cash-flow results with the same view using No Shock. Check any property-level overrides before interpreting the total.
| Example base cap rate | Shock entry | Adjusted assumption |
|---|---|---|
| 5.00% | +50 bps | 5.50% |
Illustrative rate arithmetic only. This is not a VAL-generated valuation or a forecast of the change in value.
WHAT YOU CAN DO NOW
You can run a traceable downside case and compare it with the original assumptions.
Can I apply it to just two properties?
Yes. Keep the portfolio-level Shock set to No Shock and use the Override Shock? column for the two properties. Check every property’s assignment, including any existing overrides on the others, then compare their results using the same version and scenario.
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