Redevelopment Decisions for Commercial and Industrial Properties

Munneke, Henry J.

doi:10.1006/juec.1996.0013

Cited by 62 publications

(40 citation statements)

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“…11 Munneke (1996) also obtains empirical support for the redevelopment rule in equation (3.1) for commercial and industrial property in Chicago.…”

Section: B Deviations Between P T B (S(t)) and C T S T And Excess Prmentioning

confidence: 78%

Residential Buildings and the Cost of Construction: New Evidence on the Efficiency of the Housing Market

Rosenthal

1999

Review of Economics and Statistics

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-Present value studies of asset market efficiency are controversial because they compare asset prices to unobserved discounted streams of future rents. As an alternative, if housing markets are efficient, then the price of residential capital or buildings should satisfy the following two conditions: (i) deviations between new building prices and construction costs should disappear faster than construction lags and have no effect on construction, and (ii) temporary building price shocks should dissipate at a similar rate for different vintage buildings. Results from an errorcorrection model support both hypotheses for single-family housing in Vancouver, British Columbia. This implies that the implicit market for residential buildings is efficient and that any inefficiencies in the housing market must lie in the market for land itself.

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“…11 Munneke (1996) also obtains empirical support for the redevelopment rule in equation (3.1) for commercial and industrial property in Chicago.…”

Section: B Deviations Between P T B (S(t)) and C T S T And Excess Prmentioning

confidence: 78%

Residential Buildings and the Cost of Construction: New Evidence on the Efficiency of the Housing Market

Rosenthal

1999

Review of Economics and Statistics

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“…The optimal redevelopment rule identified by Brueckner (1980) states that the development or redevelopment of any parcel will take place when the value of the parcel converted to a new use net ofthe conversion costs exceeds the value of the same parcel remaining in its current use -that is, when there is a positive value differential on the given parcel. Value differential theory has been strongly supported empirically by three recent studies (Rosenthal and Helsley, 1995;Munneke, 1996;McGrath, forthcoming).…”

Section: The Urban Economic Approach To Modelingmentioning

confidence: 90%

An Approach to Spatial Urban Land Use Change for Hydrologic Modeling

McGrath

2001

JWMM

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“…Applications of Lee's method with regards to the estimation of land prices, along with detailed explanations of the selection model can 7 There is overwhelming empirical evidence of a concave function between urban land price and parcel size over time and across different markets. For example, see Brownstone and DeVany (1991), Colwell and Munneke (1997), Colwell and Scheu (1994), Isakson and Ecker (2001), McMillen andMcDonald (1989, 1991), and Munneke (1996). There is an alternative viewpoint, termed the Mickey Mouse Problem by Oi (1971), that land prices are linear with a vertical intercept reflecting the price of entry into a community.…”

Section: The Price Equationmentioning

confidence: 96%

“… See Brownstone and DeVany (1991),Colwell and Munneke (1997),Colwell and Scheu (1994),Isakson and Ecker (2001),McMillen and McDonald (1989, 1991), andMunneke (1996).…”

mentioning

confidence: 98%