Baya and CompStak to Develop CRE Industry’s First-Ever Automated Valuation Model

Breakthrough collaboration that will improve the way Property Investors, Brokers, Lenders and Others value income-producing real estate assets. (“Baya”), the blockchain network currently being developed by workspace provider Knotel, and CompStak, the leader in crowdsourced commercial real estate information, today announced that they are collaborating to create the commercial real estate industry’s first-ever Automated Valuation Model for income-producing property assets.

By leveraging CompStak’s proprietary lease transaction data, combined with floor-by-floor availability history from Knotel’s recently acquired search engine, 42Floors, CompStak and Baya will create an Automated Valuation Model that accurately captures the full Net Operating Income of income producing commercial real estate assets, like office buildings. The information produced and delivered collaboratively by the two entities will provide greater market transparency to real estate investors, brokers, lenders, analysts and other market participants.

Knotel co-founder and CEO Amol Sarva says, “For far too long, commercial real estate has been trapped in the dark ages, as far as valuation is concerned. Our vision for Baya, with the acquisition of 42Floors, was to shed light on a notoriously opaque endeavor: evaluating the value of office buildings based on their income-generation potential.”

Michael Mandel, CEO of CompStak says: “While the residential real estate market has seen tremendous growth in Automated Valuation Models (AVMs), an AVM for commercial real estate, and particularly office building valuation has always been elusive. As the leader in commercial lease transaction data, we knew that CompStak was uniquely positioned to solve this problem. When the opportunity arose to leverage the 42Floors historical availability data to round out the data set, we were thrilled to collaborate. Utilizing CompStak’s robust database of lease comps, combined with proprietary modeling techniques to arrive at values where 42Floors has tracked availability will allow us to create a model that is not only revolutionary, but also rock solid in its accuracy.”

The proof-of-concept for the Automated Valuation Model, which will be based on information produced by the two companies, is expected to be completed in 2019.

Regina Glick

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