Rental adjustment and valuation in overbuilt markets: evidence from the Sydney office market

Article Abstract:

Valuation becomes difficult when the real estate market is challenged with oversupply, rent concessions and a shortage in arms-length transactions. To address this problem, a model for valuing real estate in overbuilt markets is presented using office building data from Sydney, Australia during the 1970-1992 period. This approach computes fundamental value as replacement cost minus the present value of expected below-equilibrium rents. The percentage change in real effective office rents is associated with gaps between both the natural and actual vacancy rates and equilibrium and actual real rental rates. By including the rent gap, this model ensures that actual rents will ultimately regress to their equilibrium condition.

Real estate industry, Buildings and facilities, Sydney, Australia

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The economic consequences of regulatory taking risk on land value and development activity

Article Abstract:

This article discusses the relationship between land valuation, land use, and property rights. Topics include regulatory taking, growth control, and financial decision making.

Regulatory taking (Law)

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The sensitivity of homeowner leverage to the deductibility of home mortgage interest

Article Abstract:

The usage of home-owner leverage methodologies for mortgage interest tax rate reductions is discussed.

United States, Taxes, Mortgages, Methods, Taxation, Home ownership, Tax abatement

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