The use of comparative market coefficients to measure office property market and fair values: Some special aspects

Subject. This article deals with the issues of assessing the market value of office real estate. Objectives. The article aims to substantiate the need to use special calculated values of multipliers differentiated by the main cost factors. Methods. The study is based on the verification of the considered methods of valuation of office real estate on the basis of pair and multiple regression methods, as well as the theoretical and methodological aspects of assessing the value of office real estate, in particular, on the application of the gross rent multiplier (GRM) method. We also used general scientific methods of cognition, empirical and economic analysis methods, methods of scientific abstraction, comparison, classification, generalization, grouping, and graphic analysis. Results. The article identifies the main factors in determining the value of office real estate, analyzes the values of the office real estate objects’ value by published multipliers and various calculated types of multipliers, and also it compares the values obtained. It focuses on the fact that the value of office real estate obtained on the basis of published values of gross rent multipliers, is underestimated. The article also justifies the need to use multipliers that are more detailed in terms of cost factors.