<abstract xmlns="http://www.w3.org/1999/xhtml"><p>We propose a new model for the decomposition of rental multipliers for the property building element which also supports valuation of income-producing real properties based on the principle of stability and an un-orthodox application of discounted cash flow analysis. Having regard to the building/land element analytical split of overall property, the proposed model explicitly accounts for the impact of the value of underlying land on the decomposition of rental multipliers, and doesn’t require long-term forecasting of income.</p></abstract>

We propose a new model for the decomposition of rental multipliers for the property building element which also supports valuation of income-producing real properties based on the principle of stability and an un-orthodox application of discounted cash flow analysis. Having regard to the building/land element analytical split of overall property, the proposed model explicitly accounts for the impact of the value of underlying land on the decomposition of rental multipliers, and doesn’t require long-term forecasting of income.

A Model to Decompose Property Rental Multipiers with Regard to the Division Between Land and Building Elements

Central Economics and Mathematics Institute (CEMI), Russia Academy of Science (RAS)

Real Estate Management and Valuation

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

We propose a new model for the decomposition of rental multipliers for the property building element which also supports valuation of income-producing real...

A Model to Decompose Property Rental Multipiers with Regard to the Division Between Land and Building Elements

Published Online: Apr 04, 2016

Page range: 51 - 63

DOI: https://doi.org/10.1515/remav-2016-0005

Keywords
market value, valuation, buildings, income, rental multiplier, land, taxes, ad valorem expenditures, discounting

© 2016 S.A. Smolyak, published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

A Model to Decompose Property Rental Multipiers with Regard to the Division Between Land and Building Elements

Published Online: Apr 04, 2016

Page range: 51 - 63

DOI: https://doi.org/10.1515/remav-2016-0005

Keywordsmarket value, valuation, buildings, income, rental multiplier, land, taxes, ad valorem expenditures, discounting

© 2016 S.A. Smolyak, published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
market value, valuation, buildings, income, rental multiplier, land, taxes, ad valorem expenditures, discounting