Determination of the capitalization rate based on generalization of the trading segment market information

Abstract

The commercial real estate market has been hit hard by the coronavirus. Many segments of commercial real estate in 2020 found themselves in a situation of complete cessation of activity due to the lockdown. Each segment is experiencing crises in the economy in its own way, however, it should be noted that even in the current circumstances, the commercial real estate market is mobile, supply and demand is present, real estate transactions are being made. The purpose of the study is to determine the capitalization rates for the trading segment using the direct capitalization method. Tasks: determining the state of the commercial real estate market, in particular the retail segment, determining which objects of the considered segments can be applied to the direct capitalization method, determining the calculation of the capitalization ratio, using regression analysis to refine the results of the capitalization ratios, analyzing the obtained values. The work used the method of direct capitalization, the method of direct comparison, regression analysis, data analysis. As a result of this study, capitalization rates for the trading segment were determined using the direct capitalization method. The objects of the considered segments are determined, to which it is possible to apply the direct capitalization method.