How does CompStak calculate adjusted rent?

CompStak uses one of 4 level of estimations to calculate adjusted rent, following hierarchy below:

1. When Operating Expense (OpEx) is crowdsourced with rent together: Adjusted Rent = Rent + OpEx value
2. Building Class ML Model Available: Adjusted Rent = Rent x Building Class Adjusted Rate
3. Overall Market ML Model Available: Adjusted Rent = Rent x Market Adjusted Rate
4. None of the Above Available: Adjusted Rent = Rent x Average OpEx ratio in market

In the event that the OpEx value is not collected through crowdsourcing, CompStak constructs hedonic regression models to estimate OpEx values - please read our full white paper if you'd like to learn more about CompStak's hedonic regression models. Depending on data availability, the model can be constructed at the market and building class level or solely at the market level.

For instance, in a market with a large amount of data, such as Chicago, adjustment rates would vary between a class A and class B building because there were separate models constructed for each building class. Conversely, in a smaller market where individual models cannot be constructed for each building class group, all leases in the market would share the same adjustment rate regardless of the building class. If no regression models can be constructed in a market, the adjustment would be estimated by taking the simple average of all the leases where the OpEx / Rent ratio can be observed.