Clientele Effects and Condo Conversions

During an asset boom a property can develop a new usage. Appreciation investors emerge to change a property's occupant mix or letter grade. Rental investors not intending to change the mix or grade are outbid. Sellers receive a capitalized premium from the new type of bidder. For apartments in...

Full description

Saved in:
Bibliographic Details
Published in:Real estate economics 2008-09, Vol.36 (3), p.611-634
Main Authors: Benjamin, John D., Chinloy, Peter, Hardin III, William G., Wu, Zhonghua
Format: Article
Language:English
Subjects:
Appreciation
Bidders
Condominiums
Housing developments
Investors
State court decisions
Studies
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:During an asset boom a property can develop a new usage. Appreciation investors emerge to change a property's occupant mix or letter grade. Rental investors not intending to change the mix or grade are outbid. Sellers receive a capitalized premium from the new type of bidder. For apartments in Miami‐Fort Lauderdale during 2004–2006, there is an asset pricing premium from condo converters. The price of real estate depends on clienteles in addition to characteristics.
ISSN:1080-8620
1540-6229
DOI:10.1111/j.1540-6229.2008.00224.x