Using a sample of CCIM designees and candidates in an experimental setting, this study examines the impact of broker signaling in commercial real estate transactions. It also explores the effect of certainty of closure in commercial real estate transactions. Findings suggest brokers are able to influence transaction pricing. Moreover, detailed analysis reveals that when a signal is above a reference point implied by previous transactions, the strength of the signal matters; privately communicated signals from reliable sources have significantly greater impact than signals which are made widely available. Additionally, we find an approximately 10% premium in transactions with lower certainty of closure than one with high certainty. The latter result varies by transactional participant type; owner/developers require a larger premium than institutional sellers.
As downtown redevelopment occurs, eminent domain continues to be used as an economic development tool. This research evaluates the equity, effectiveness, and efficiency of certain components of eminent domain as it is used for downtown economic development projects. A survey-based methodology was employed to acquire data from city managers located in the 239 most populous cities within the United States. The findings indicate that eminent domain is effective in raising property tax values, efficient in minimizing litigation-based project delays, but inequitable to various developers seeking title to property following condemnation.
ABstRACt. We investigate the potential competition between multifamily and condominium developers for raw land throughout the U.S. When considering the entire sample period, we find evidence that condominium developers paid, on average, more for land than their multifamily counterparts. Alternatively, when we separate the sample into low versus high-growth locations and two time subperiods, we observe that the premium is not entirely consistent. The average premiums appear to be largely a result of the high-growth locations from 2004 to mid-2008. Indeed, the results demonstrate that condominium developers paid over 60 percent more for land in high-growth states during the later subperiod. This extraordinary premium calls into question the price formation process in these locations.
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