An Analysis of the Determinants of Industrial Property Valuation

Recent research investigated the relationship between physical factors and the asking price of industrial buildings. We extend prior research by including physical, locational, financial and economic variables to determine the factors that influence the sales price. This research provides an initial...

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Bibliographic Details
Published in:The Journal of real estate research 1993-07, Vol.8 (3), p.365-376
Main Authors: Fehribach, Frank A., Rutherford, Ronald C., Eakin, Mark E.
Format: Article
Language:English
Subjects:
Ceilings
Docks
Economic indices
Industrial buildings
Industrial property
Mathematical independent variables
Office buildings
Railroad buildings
Real estate appraisal
Value appraisal
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Summary:Recent research investigated the relationship between physical factors and the asking price of industrial buildings. We extend prior research by including physical, locational, financial and economic variables to determine the factors that influence the sales price. This research provides an initial valuation framework for appraisers and is a first step toward the development of an industrial property index. Eleven variables—building size, office space, dock doors, ceiling height, age, distance to the Dallas/Fort Worth Airport, county of sale, industrial cap rate, prime rate, tenant type, and date of sale—are found to explain the sales price of industrial property.
ISSN:0896-5803
2691-1175
DOI:10.1080/10835547.1993.12090717