Estimation of the Share of Land in Industrial Real Estate by the Method of Regression Analysis

Purpose: The purpose of this study is to develop methods for indirectly assessing the value of land in a single property. Design / Methodology / Approach: This study proposes an alternative approach to calculating the value of a land plot (by analyzing the share of a land plot in the value of a single property). In the article, the authors consider the share of a land plot in the value of a single property as a result of the action of various pricing factors. The method of regression analysis was used as a methodological basis. Findings: Based on the results of the regression analysis, the authors gave recommendations on the use of each of the formulated factorial models and made conclusions about their applicability. Practical Implications: The results of this study can be used in cadastral valuation practice as well as market valuations used to challenge the cadastral valuation results. Originality / Value: The presented study is an alternative way of calculating the value of land in a single property, which is especially valuable in the face of a lack of initial information required to implement the traditional methodology of comparative sales.