Internet Tool

In the Spring of 1995, we wrote in this space about the Baseline Model for industrial valuation. The Baseline Model is a tool that allows rapid valuation of standard-quality industrial buildings in Greater Boston. To make the model more accessible to users, we have put a working copy on the Internet. We offer it for your use in its testing phase.

The Baseline Model is designed for the valuation of standard, one-story industrial buildings in the region from Boston to Route 495. Your building is suited to valuation with the model if it has a gross area of 5,000 to 80,000 square feet; no more than 20% of its space on upper floors; up to 50% of its space built out as office; and design for single occupancy, without leases.

Gather Your Facts
Before you get on line with the model, assemble some essential facts about the property you wish to value:
- land area, and the percent available for industrial use
- gross building area
- percent built out as office
- clear height
- approximate date of construction and of major upgrades

Access our web page at www.erassoc.com. Click on "The Baseline Model."

The model will ask for the location of your property and present you with a map. You will take a reading of the baseline rate for your property's location. The model will then ask a series of questions about your property. When your answers are complete, the model will present you with the calculation of value, as well as the property description you have entered, the map, and a brief outline of methods. The presentation is on-screen. It can be downloaded for print-out from your work station.

The Baseline Model was developed from regression analysis of more than 500 sales of industrial property in Greater Boston from 1992-1997. We continue to develop the model with new data and regression analysis. For those interested, a discussion of methods is available in "Industrials: The Baseline Method," from the July, 1997, issue of The Appraisal Journal, from The Appraisal Institute. One spin-off of the model is the Baseline Map of Industrial Values published with our last newsletter. It is important that users understand what the model is and is not. The output from the model is not in itself an appraisal. The model is a tool in the hands of the operator, who takes the result as part of a property's broader value picture. The model is in development. Our goal is to make it as accurate and useful as possible.

Feedback

Once you have used it, we want to know how the model has worked for you. We need your feedback. We would appreciate that you tell us what you can about it - how easy or hard it was to use and how accurate. If you feel that the model has served you well, return the favor by passing along to us any sales or rental data you may have.

Welcome to the Baseline!