METHODS OF MASS APPRAISAL OF COMMERCIAL REAL ESTATE RENTAL RATES IN THE NARROW MARKETS

Abstract

The narrow markets in small settlements where the commercial real estate supply is scarce cannot be analyzed statistically. The problem becomes extremely complex when the research should take into consideration a wide range of Russian settlements. Moreover, there is a mismatch between the expected labor costs for data collecting and processing and achieved results.In this context, the task of developing a methodology for determining the rental rates for commercial real estate in the narrow markets in conditions of zero or minimum supply is highly relevant. The article shows that the main problem is to find correlation between economically reasonable and statistically proven average rental rates and a straightforward factor which can be easily determined.

Keywords

• narrow markets
• rental rates
• secondary markets
• commercial real estate
• market model
• correlation of prices