2024 · Journal article
Commercial property valuation
A novel approach to commercial property valuation: Successive term indexing and its competitive implications
Citation · APA 7
Tahotný, L., Suchý, V., Schönfeld, J., & Rózsa, Z. (2024). A novel approach to commercial property valuation: Successive term indexing and its competitive implications. Acta Montanistica Slovaca, 29(2), 500–512. https://doi.org/10.46544/AMS.v29i2.21
In brief. The article proposes successive term indexing, a mechanism for updating commercial property valuations that are at least one term old. It combines hedonic regression, k-means clustering and stepwise variable selection. Applied to data from a banking institution, the model achieved high accuracy, with reassessment ratios from −3.8% to 5.2% for 2022.
Implications.
- It offers banks and valuers a simple tool for updating valuations.