Collateral Analytics—a provider of real estate analytics products —has unveiled a new automated valuation model (AVM) to assist lenders with monitoring commercial property values and provide access to accurate, fast and cheap commercial real estate valuations.
As new data sources and advances in modeling techniques have evolved, there has been a considerable improvement in the accuracy and geographical coverage of Residential AVMs in the past few years. The greater availability of robust quantitative and qualitative data in recent years has led to greater efficiency. No commercial AVM was not successfully launched till date because the commercial real estate market generally falls into the miscellaneous category. Furthermore, commercial property values are much more dependent on the rental rates, and terms of underlying tenant lease in contrast to residential properties.
Collateral Analytic's Commercial AVM is designed to address an increasing need for monitoring property values, and for estimating and updating total return estimates. Michael Sklarz, President and CEO of Collateral Analytics adds that the need for speed and efficiency for property values suggests a good acceptance of Commercial AVM in the marketplace.
Corporations can use this platform to instantly update property values, which are tracked using book values on most financial statements and consists of cost less depreciation which is never correlated with real value. Also, investors can update the portfolio of properties quickly and accurately when compared with the slower and expensive manual appraisal process.
Collateral Analytics is leveraging its experience with residential property valuations and in-house expertise working with commercial properties. Also, they utilize their broad data experience, leading-edge analytic techniques, and website platforms to improve the new Commercial AVM platform continuously.
CA is comprised of a team of analytics and technology professionals working closely together for nearly ten years and has been primarily focused on building and delivering AVM models, collateral and mortgage risk tools and the application of sophisticated analytics to a wide range of real estate related databases.