How do you calculate Market Rents? 

When it comes to calculating rents, CompStak uses a heuristic method to assess, adjust and unify different lease types to the same level as Gross Rent. If the rent type is already Gross Rent, we don't make any changes. But if the rent type is different, we adjust it by adding the operating expenses (OpEx) to the base rent. Sometimes, we need to use a series of data exercises to figure out the corresponding Gross Rent before we can feed the data points to Chartbuilder. 

For each market and property type*, we use Machine Learning models** to derive the Net to Gross adjusted rate for each building class as well as for all aggregated building classes. 

If we don't have enough data to use a sound ML model, we calculate the adjusted rate by averaging the OpEx ratio on the market level. Then, we multiply the base rent by the lowest level of adjusted rate available to calculate the derived Gross Rent.

This heuristic method helps CompStak quickly calculate adjusted rent using the available information without relying on a single formula that may not work in all cases.