BOXWOOD SMALL-CAP CRE PRICE INDICES

DATA-INFORMED MODELS & FRAMEWORKS

All real estate is local, but it isn't enough to simply have a vast database of sales transactions that would allow us to assess the tenor of the commercial real estate market on a metro-by-metro basis. Our data and analytics also need to be reliable, precise, and reflective of actual market conditions. We are able to get an accurate read on price points by adhering to conventional, well-established valuation techniques that have stood the test of time, where comparable property sales are modified in accordance with a given property's attributes and overall condition. We build on this tried-and-true framework with contemporary data analytics that provide added context. This is made possible through multivariate hedonic models–statistical methods that are also routinely applied to other time-series measures like the consumer price index, among other indices. Multivariate hedonic modeling enables us to more systematically estimate the influence that variables such as location, property use, construction type and vintage have on sales prices. Once we develop this data, we use it to create price indices that are comparable across all metro areas and over time as well.