Selection Model Establishment And Application Research For Profit Mode Of Commercial Real Estate

Since the 21st century, along with China’s rapid economic development, Chinese real estate market enters into express way of rapid advance, while commercial real estate is the most profitable part in whole real estate project development and is also a profit point which various major real estate developers most attach importance to. Although marketing patterns get rid of the stale and bring forth the fresh, and the sales promotion modes emerge in the sales process of commercial real estate, the ultimate objective is always consistent, namely maximizing commercial profit.According to the different operation mode of commercial property, profit mode of commercial real estate is divided into six types, this article analyzes available conditions necessary for each profit mode as well as advantages and disadvantages of each profit mode. And simultaneously establishes a "selection model for profit mode of commercial real estate" by combining financial decision knowledge (including time value of money, investment project cash flow estimate, application of static and dynamic indicators of investment decision, price decision, cash decision etc.) with land property industry experience for many years. When schemes are selected, the selection model for profit mode in this article is divided into three steps:firstly select an alternative scheme by making qualitative analysis for internal and external influencing factors. Secondly perform numerical quantification comparison through financial contrastive analysis, analyze and contrast cash flow generated by different profit modes adopted in the same project and financial income finally obtained in the project. Finally select optimal mode by combining with company’s strategy. It is hoped that it can provide certain reference when decision maker selects schemes.