Discussion of Commercial Real Estate with A Short Remaining period of Land Use Rights on Evaluation Thoughts of Income Approach

Abstract

This paper analyzes the applicability of different evaluation methods for commercial real estate with a short remaining period of land use rights, and believes that for some situations where renewal can be determined or the possibility of renewal is high, evaluate renewal’s pricing should consider both the subsequent income value and the impact of renewal payment on the value, and it is not advisable to measure its value only by the remuneration capitalization approach (full remaining life model).