Predicting Commercial Real Estate Rent: An Empirical Study

Abstract

The paper aims to assess the dynamics that affects the retail rental outlets in a metro city considering the case of Mumbai, the commercial capital of India. The study uses a data set of shopping outlets in both shopping malls and stand-alone stores in this metro city. Regression and CART models are constructed to estimate the importance of the determinants and predict the rental values of the shopping outlets. The findings of the paper clearly indicate the significance of some of the determinants used in the study in predicting rental values. The results of the study would help builders, developers and investors to gain critical and empirical insights into the variables of the retail rent in any emerging real estate market.