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Valuation Analysis of Commercial Real Estate Using the Nearest Neighbors Appraisal Technique
Author(s) -
ISAKSON HANS R.
Publication year - 1988
Publication title -
growth and change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.657
H-Index - 55
eISSN - 1468-2257
pISSN - 0017-4815
DOI - 10.1111/j.1468-2257.1988.tb00466.x
Subject(s) - valuation (finance) , real estate , ordinary least squares , econometrics , income approach , accounting , estate , actuarial science , value (mathematics) , statistics , mathematics , computer science , economics , finance
The Nearest Neighbors Appraisal Technique (NNAT) is pitted against the traditional real estate appraisal process and ordinary least squares (OLS) estimates of value for various types of commercial real estate in Dallas, Texas. Additionally, time is explicitly entered into NNAT. NNAT estimates of value are significantly more accurate than the traditional appraisal process for all types of commercial real estate, it is significantly more accurate than OLS estimates for retail and miscellaneous properties, and it is more accurate, but not significantly so, than OLS estimates for other types of commercial real estate.