The data in a lease rates database is typically collected from a variety of sources, such as real estate agents, property management companies, and public records. The data is then validated and checked for accuracy and completeness by a team of experts, who ensure that the database contains reliable and up-to-date information.

When determining lease rates for transfer pricing purposes, a number of factors are taken into account, including the location of the property, the condition and age of the asset, the size of the property, and the rental market in the local area. Other factors such as the length of the lease, the type of property, and the level of maintenance required may also be considered.

Using a lease rates database for transfer pricing can provide a number of benefits for multinational companies, including helping to establish fair and arm's length prices for cross-border transactions, reducing the risk of transfer pricing disputes with tax authorities, and providing a benchmark against which to measure the performance of local subsidiaries and operations.

While a lease rates database can be a valuable tool for transfer pricing purposes, there are some potential limitations and drawbacks to consider. For example, the data in the database may not always be relevant or comparable to the specific circumstances of a transaction, and there may be variations in local rental markets that are not captured in the database. Additionally, the use of a lease rates database may be subject to scrutiny by tax authorities, who may challenge the validity of the data or the methodology used to determine the rental price.