Redevelopment decisions for commercial and industrial properties

Article Abstract:

A study was conducted to prove that redevelopment of a property will take place when the value of the current bundle and demolition costs is lower than or equal to the price of the vacant land. Although similar studies have been conducted in the past, this one differs in that it focuses on commercial and industrial properties instead of single-family dwellings, and uses a new data set. The data in this study indicate commercial and industrial property transactions in Chicago, IL, from Apr. 1987 to Dec. 1990. Empirical results support the redevelopment hypothesis. An escalation of the parcel's value in its redeveloped condition relative to its value in its current use has a positive impact on the probability of redevelopment for both commercial and industrial land uses.

Remodeling and renovation, Commercial buildings, Industrial buildings

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The structure of urban land prices

Article Abstract:

A study was conducted to examine the impact of recognizing the concavity of urban land prices on the measurement of the rate at which land price falls with distance from the urban center. This research estimated the distance effect in a unit price equation constraining the link between price and lot area to be proportional. The distance effect was also tested in a total price equation without the constraining assumption. The study employed micro-transaction data from vacant residential, commercial and industrial parcels sold in Cook County, IL. Findings revealed that acknowledgement of concavity leads to the reduction of measured rates of price decline with distance, although it does not result in elimination of the rates.

Prices and rates, Land subdivision, Cook County, Illinois

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Taxes, fees, and urban development

Article Abstract:

An examination of the effect of taxes on patterns of urban development is presented using a model in which the capital-to-land ratio is the variable. Topics include effects of development fees on capital, land value, and agricultural rental income.

United States, Social aspects, Statistical Data Included, Taxation, Real estate development, Tax policy, City planning, Urban planning

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