A Simplified Approach to Understanding Capitalization Rates
August 1996, Vol 21, No 2 Abstract: Capitalization rates have become an important indicator of real estate market conditions. This article focuses on the expected income growth component of the capitalization rate. In analyzing data from investment advisors, expected income growth rates were found to be highly correlated with expected CPI inflation rates derived from an… Read more
Recent Evidence on Investor Preferences and Yield Requirements
August 1996, Vol 21, No 2 Abstract: The paucity of real estate investment activity during the bleakest days of the industry depression in the early 1990s prompted some observers to claim that commercial property investment would never again be the same. Others, counting on the long history of cyclicality in the real estate business, rallied around… Read more
Environmental Regulation: How it Evolved and Where it is Headed
April 1996, Vol 21, No 1 Abstract: The author addresses the history of environmental regulation by the federal government since the mid-1960s and explains why its growth has resulted in a deregulatory backlash. Federal environmental regulation stemmed from concerns raised by early environmentalists such as Rachel Carson; it increased because growing affluence led people to want… Read more
Environmental Racism: The New Liability for Industrial Site Selection
April 1996, Vol 21, No 1 Abstract: Site selection for an industrial facility involves many factors and always carries potential liability. However, adding to the complexity of the site selection process and increasing the potential for legal exposure is the new factor of environmental racism. Here claimants allege that industrial planners target minority neighborhoods as sites… Read more
Building and Financing a Low-Income Housing Project
April 1996, Vol 21, No 1 Abstract: The problems associated with building and financing low-income housing projects are formidable. There are substantial opportunities and pitfalls involved in acquiring state approval and in selling the tax credit programs. Still, Section 42 of the Internal Revenue Code offers opportunities for developers and consultants who want to build low-income… Read more
An Analysis of Italian Property Markets
April 1996, Vol 21, No 1 Abstract: In this article Alberto Lunghini discusses the trends in Italy's economy and property markets and documents problems which are similar to these in the U.S. and other major countries. The downturn in Italy's property markets took place in the early 1990s, whereas in the U.S. it began in 1987-1988. And while most property markets in the U.S. have largely recovered, Lunghini predicts this will not happen in... Read More