A Model for Determining the Market Rental Rate for Properties

What is it about?

The purpose of this paper is to develop a model for determining the rental income from fixed assets of an enterprise in an undeveloped market. In this research, a model for market rental rate calculation in conditions of limited supply was developed.

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Why is it important?

The obtained value of the rate of return on equity for cash flow can be used in the calculation of the present value of cash flows of the rental income. The paper clarifies the market rental payment for property classified in the segment with a limited number of offers. The paper calculated the discount rate on the models of the CAPM and the WACC and received rental income for the transfer excess and non-core assets for rent.