The Baseline Model


Welcome to the Baseline Model.

The Baseline Model is an analytical tool for various users:

Used properly, the Baseline Model is a high-quality valuation tool with accuracy that rivals that of standard analysis through the Sales Comparison Approach, the method most frequently used for single-occupant industrials by appraisers.

The model is derived from analysis of more than 500 sales of industrial property that took place in Greater Boston in 1992-1997. The sales data were subjected to multiple regression analysis. (For a technical discussion, see "Industrials: The Baseline Method," available by calling 617-577-0096.) The result of the analysis is a map that shows the price per square foot of building for a standard, 1970-era, 20,000-square-foot one-story industrial building on a 67,000-square-foot site at the various locations that industrial buildings are found in Greater Boston. Once the baseline rate is found from the map, a chart makes statistically-based adjustments to the baseline rate for building age and quality. In this way, the model can be used to derive a value indication for a broad range of industrial properties.

How To Use The Model

The Baseline Model will take you through several steps, including a map from which you will take your "baseline reading." You will be asked a series of questions about the property you wish to value. From your answers, the model will construct a chart with adjustments to the baseline rate, to give you the indication of the value of your property. You will view the result on the screen. You can print out the result to your printer. The model prints out three pages:

The Baseline Model is in the beta testing stage. We would appreciate your comments. We leave you space at the end to tell us whatever you can about how the model worked for you.

What the Baseline Model is Best Suited For

The Baseline Model is more accurate in the valuation of some buildings than others. Its greatest accuracy to date has been in the valuation of buildings most similar to the 20,000-square-foot baseline building. It is not suitable for valuation of offices or r&d buildings. The model is derived from sales of industrial buildings (buildings where the majority of space is open, high-ceilinged warehouse or shop, largely windowless) in a size range of 5,000 to 80,000 square feet. It is designed for valuation of buildings within the following ranges:

As buildings depart from the above parameters, accuracy falls off.

The model has nevertheless proven accurate in the valuation of some buildings that fall outside some of these ranges, including large buildings of up to 200,000 square feet.

It has proven less accurate in the valuation of other building types:


The Baseline Model will ask you questions. Click the "Submit" button at the bottom of each page to go to the next page. Click the "Go Back" button to return to the previous page.

Proceed if you can give a "yes" answer to this statement:

I have read the material above and understand how the Baseline Model is used. If I have any questions, I will call 617-577-0096 for an explanation before I make use of the model.