Commercial and Residential Land Prices Across the United States

Nichols, Joseph; Oliner, Stephen D.; Mulhall, Michael R.

doi:10.2139/ssrn.1783627

Cited by 4 publications

(1 citation statement)

References 11 publications

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“…Indeed, it is relatively easy to find information about the weights of the main locational attributes since they "are indeed capitalised in land values" (Kauko, 2003, p. 253). Accordingly, a rough estimation of the overall weight of locational features can be inferred by the ratio between the land value and the market value of a property (Davis & Heathcote, 2007;Davis & Palumbo, 2008;Oliner et al, 2010), a parameter that has been called "land leverage" (Bostic et al, 2007, p. 184). Equally, the weights of primary structural attributes can be approximated referring to cost data, namely, based on the construction costs of the building components (Davis & Heathcote, 2007;French & Gabrielli, 2007;Davis & Palumbo, 2008).…”

Section: Conceptual Frameworkmentioning

confidence: 99%

The Effect of Hybrid Attributes on Property Prices

Copiello

Cecchinato

Salih

2021

Real Estate Management and Valuation

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This study focuses on the sales comparison and the adjustment grid methods, under the framework of the market approach to valuation. The literature mostly focuses on the structural qualities of the properties, referring to the buildings and their locational characteristics, which pertain to their positioning within the urban fabric. Here we focus on a particular set of attributes which depend on how a building is placed in a specific land plot and relate to the surrounding environment. The term «hybrid» is used to identify this class of attributes. It is shown that hybrid attributes affect property prices and should not be disregarded by practitioners and appraisers. The role played by hybrid characteristics is analyzed based on the methodological foundation of the hedonic and the adjustment grid methods. The derived linear and log-linear models are tested by means of a case study. The models prove to have high explanatory power. The weight of each hybrid attribute is estimated to vary between 1% and 10%. Overall, these attributes contribute to 17-23% of the property prices. The validation performed using the grid adjustment method shows that the estimated marginal prices are effective in adjusting the prices per unit area of the comparables.

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Section: Conceptual Frameworkmentioning

confidence: 99%

The Effect of Hybrid Attributes on Property Prices

Copiello

Cecchinato

Salih

2021

Real Estate Management and Valuation

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An Empirical Study of Land Leverage as a Function of Market Value Using a Spatial Autoregressive Model

Copiello

2020

Appraisal and Valuation

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Appraisal of Manufacturing Buildings Through the Depreciated Replacement Cost Approach

Copiello

Cosmi

Stanghellini

2016

Appraisal: From Theory to Practice

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It is well-known that the persisting crisis of the real estate market, in the wake of the large-scale financial and economic crisis starting from the year 2008, is leading to diminishing property values. An earlier and more pronounced effect lies in the lower number of transactions resulting in the scarcity of sales that characterizes several sub-markets, including the one concerning the manufacturing buildings. Within the real-estate appraisal discipline, the aforementioned framework entails growing difficulties—if not even the inability—to find an appropriate number of so-called comparables, to implement the market-value estimation process. This condition involves the need to identify alternative estimation procedures. Some specific features of manufacturing buildings pave the way to the adoption of the Depreciated Replacement Cost method. Indeed, due to the evolution of the construction techniques, the old factory buildings are frequently classed as ‘out of production’. Meanwhile, the poor market conditions make them prone to be treated as out of the market. The depreciated replacement cost procedure has been debated occasionally within the literature, both national and international. Nonetheless, its application still deserves further research due to the fact that it entails several relevant issues. This study focuses on three of them. The first concerns the estimation of the useful life and the residual life of the buildings characterized by heterogeneous structures, finishes, and installations, due to their realization or replacement during different time periods. The second topic refers to the distinction between land value and improvement value. Finally, the third issue relates to the relationships among the results of the estimation procedure, the real-estate appraisal discipline as a whole, and the accounting principles, on which companies’ balance sheets rely

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Commercial and Residential Land Prices Across the United States

Cited by 4 publications

References 11 publications

The Effect of Hybrid Attributes on Property Prices

The Effect of Hybrid Attributes on Property Prices

An Empirical Study of Land Leverage as a Function of Market Value Using a Spatial Autoregressive Model

Appraisal of Manufacturing Buildings Through the Depreciated Replacement Cost Approach

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