Trade real estate market value for crediting

Client

Investment and development company

Objective

Assessment of the market value of trade center premises for collateral.

Approach

An analysis of the commercial real estate market has revealed a large number of sales offers on similar built-in premises. This makes it possible to apply a sales comparison approach to the real estate valuation. Moreover, the availability of the commercial real estate lease offers, including trade, offices, and hospitality sector properties, allowed us to apply an income approach to value the premises.

When applying the cost approach, the cost of the facility was calculated on the basis of determining the costs necessary to replace or restore the premises, taking into account its depreciation. Considering the fact that the premises were built-in, the cost approach was not applied.

Results

Using correlation-regressive analysis, and the calculations defined in the sales comparative approach, the values of the objects were determined and used in secured lending.



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