ISSN:1080-8620    

DOI:10.1111/1540-6229.00381

出版商:Blackwell Publishing Ltd    

年代:1986

数据来源: WILEY

摘要:

The purpose of this paper is twofold. First, a set of price indexes are developed for thirty‐four metropolitan areas for the years 1975 and 1978. Indexes are also broken down by central city and suburb for twenty two of the metropolitan areas. These indexes measure variation in the price per unit of owner‐occupied housing stock and the price per unit of housing services of rental housing. Confidence intervals are constructed for the price indexes. It is found that the indexes are reasonably precise measures in that the typical ratio of the confidence interval to the predicted median rent or value is about 13%. Also, analysis of the confidence intervals indicates substantial and statistically significant variation in the price of housing stock and services among the metropolitan areas studied.One of the major benefits of this set of indexes is that it can be used to address one of the most important questions in real estate — Why do housing prices and rents vary among metropolitan areas and over time? Research projects are currently underway that use the data to address these two ques

ISSN:1080-8620    

DOI:10.1111/1540-6229.00382

出版商:Blackwell Publishing Ltd    

年代:1986

数据来源: WILEY

摘要:

Syndications have been widely used in real estate investment in recent years. Some have argued that syndications have been paying significantly higher prices than other forms of business organization. Using a sample of apartment transactions, we tested for price differences among alternative ownership forms. The results indicate that the null hypothesis of equal price cannot be rejected.

ISSN:1080-8620    

DOI:10.1111/1540-6229.00383

出版商:Blackwell Publishing Ltd    

年代:1986

数据来源: WILEY

摘要:

This paper develops a contingent claim model to analyze certain aspects of retail leasehold contracts. The approach allows for the explicit consideration of risk without any ad hoc risk adjustment. Both “straight” leases and “percentage” leases are examined with the value of sales as the underlying asset. Each lease value is expressed as a combination of options on sales. The effects of the lease value's determinants and equilibrium risk measurements are also a

ISSN:1080-8620    

DOI:10.1111/1540-6229.00384

出版商:Blackwell Publishing Ltd    

年代:1986

数据来源: WILEY

摘要:

This paper continues previous work evaluating the benefits of diversification and analyzes the various dimensions within the commercial real estate opportunity set. The database is large and extends through the 1982 downturn in property values. Due to the low levels of systematic risk, current distinctions by region and property type make little sense in a world of costly diversification. More exacting categories combining property type, SMSA growth rate and lease maturity offer promise for more efficient diversification within the real estate portfolio.

ISSN:1080-8620    

DOI:10.1111/1540-6229.00385

出版商:Blackwell Publishing Ltd    

年代:1986

数据来源: WILEY

摘要:

Methods for the estimation of depreciation within the cost approach to appraisal of single‐family residential property have been the focus of very few empirical studies. The purpose of this study is to generate empirical evidence related to one such method, specifically the age‐life method. Within the context of a hedonic price model, functional form of the model and the design of the age variable are chosen so that we can test for alternative paths of depreciation with just one model. The alternative paths can be concave, convex or straight‐line. Contrary to the evidence presented in several previous studies, the empirical evidence presented in this paper supports a path of depreciation for single‐family houses that is concave (i.e., initially less rapid than straight‐line). Of the standard paths of depreciation often suggested, the reverse sum of the years digits path most closely approximates the path indicated as appropriate by this study, particularly in the early years of the life of a house. If appraisers are looking for an approximation of the path of depreciation for single‐family residences, it would appear that the reverse sum of the years digits path is much more appropriate than the straight‐line path that is

ISSN:1080-8620    

DOI:10.1111/1540-6229.00386

出版商:Blackwell Publishing Ltd    

年代:1986

数据来源: WILEY

摘要:

This study presents a new appraisal technique, dubbed the Nearest Neighbors Appraisal Technique, which vastly reduces the subjectivity of the traditional adjustment grid methods while eliminating the need to adjust for subject‐comparable differences on a piecemeal basis. Any number of appraisers who apply this technique to the same property at the same point in time will get the exact same estimate of value. The technique avoids piecemeal adjustments by capturing all subject‐comparable differences in a single measure. Using single‐family sales data, the technique is found to be more accurate than any of the adjustment grid methods and hedonic price regression estimation proce

ISSN:1080-8620    

DOI:10.1111/1540-6229.00387

出版商:Blackwell Publishing Ltd    

年代:1986

数据来源: WILEY

摘要:

This paper examines the effect of recent proposals for tax reform (Treasury I and Treasury II) on the tax benefits and value of real estate income property. The effect on tax benefits is measured by the effective tax rate, and the potential impact on value is measured by the capitalization rate (user cost). The analysis of Treasury I provides insight into the effect of a tax‐neutral system on real estate since this proposal comes close to meeting the criteria of tax neutrality. The importance of debt in evaluating tax neutrality is also shown. The paper demonstrates that the interaction between tax law changes and the way interest rates adjust to inflation are critical to the conclusion

ISSN:1080-8620    

DOI:10.1111/1540-6229.00388

出版商:Blackwell Publishing Ltd    

年代:1986

数据来源: WILEY

摘要:

The use of valuation models that focus on lender criteria has been growing in the appraisal field. In the rush to build lender criteria into real estate valuation models, equity investor criteria, expectations, and requirements occasionally have been ignored. The specific criteria considered in this paper are the loan‐to‐value ratio and the debt coverage ratio for lenders and the equity dividend rate for equity investors. Each of these three criteria may be a binding constraint on value.Graphical analysis provides a framework within which major real estate valuation models (i.e., Ellwood, McLaughlin, Gettel, Lusht‐Zerbst, and Steele) are compared. A new valuation model (i.e., the Cannaday‐Colwell model) is developed which utilizes the equity dividend rate.The three definitional models (i.e., McLaughlin, Gettel, and Steele) are found to be relevant only by mere coincidence. Each of these models simultaneously considers two of the three key criteria, completely eliminating the possibility of consideration of anything else; i.e., the models become tautological.It is shown that the discounted cash flow based models (i.e., Ellwood, Lusht‐Zerbst, and Cannaday‐Colwell) each tell one‐third of the story. One of these models will be relevant depending upon whether the binding constraint is the maximum loan‐to‐value ratio, the minimum debt coverage ratio, or the minimum equity dividend rate. The relevant model is the one that yields the lowest value esti

ISSN:1080-8620    

DOI:10.1111/1540-6229.00389

出版商:Blackwell Publishing Ltd    

年代:1986

数据来源: WILEY

摘要:

Compensation for injury to business profits in eminent domain actions has long been the focus of controversy. Historically, the federal and state courts explicitly excluded profits or goodwill from a determination of an award. Under this scheme the measure of compensation quickly settled on the market value of the condemned realty. Where injury to profits was especially evident, the courts sometimes allowed future returns to the business to be included as a factor which would influence the market value. They also developed, in some states, the “specialty” doctrine where the business was unique in any number of ways. Still, the measures of compensation adopted in these cases may have been inadequate to return the business owner to the same financial position as before a taking.In this paper, we review an expanded theory of just compensation currently emerging in the courts and indicate the measure of compensation necessary to effectively return the business owner to the same financial position after a taking as before. We also show that traditional awards have been less than adequate in cases where the cash flows accruing to a business are dependent, in some fashion, on the expropriated realty.Finally, we indicate the nature of awards under a jurisdiction which is unique in the sense that it explicitly requires consideration of all elements of loss resulting from expropriation of business properties. Those awards represent a departure from previous compensation measures and conform to those indicated by the theory developed in this paper. The role of the appraiser is outlined under this expanded system of compensat

ISSN:1080-8620    

DOI:10.1111/1540-6229.00390

出版商:Blackwell Publishing Ltd    

年代:1986

数据来源: WILEY