Administrative authorization for the demolition of urban rental units pursuant to the law of 1964: a spanish example of problematic over-activity in the application of transitional laws

Transitional provisions are defined as the set of regulations that rule juridical relationships on the occasion of a legislative change. Out of this context of law succession, their indiscriminate application can lead to serious inconsistencies. The analysis of a Spanish private law example is offered to illustrate this fact. It concerns the administrative authorization for the demolition of rented buildings in the cities. A regulation repealed more than fifteen years ago and however widespread utilised on ancient constructions that, after recent urban development, have acquired great economic value; something that in the end explains the current importance of such provisions. What is happening in Spain: denaturalization of the original  figure due to a mixture of formalist interpretations and speculative market interests, is presented here to call the attention on the necessary limitation of transitional provisions’ effects.

Asymmetric adjustment in the City of London office market

Earlier estimates of the City of London office market are extended by considering a longer time series of data, covering two cycles, and by explicitly modeling of asymmetric space market responses to employment and supply shocks. A long run structural model linking real rental levels, office-based employment and the supply of office space is estimated and then rental adjustment processes are modeled using an error correction model framework. Rental adjustment is seen to be asymmetric, depending both on the direction of the supply and demand shocks and on the state of the space market at the time of the shock. Vacancy adjustment does not display asymmetries. There is also a supply adjustment equation. Two three-equation systems, one with symmetric rental adjustment and the other with asymmetric adjustment, are subjected to positive and negative shocks to employment. These illustrate differences in the two systems.

Data dilemmas in forecasting European office market rents

This paper uses data provided by three major real estate advisory firms to investigate the level and pattern of variation in the measurement of historic real estate rental values for the main European office centres. The paper assesses the extent to which the data providing organizations agree on historic market performance in terms of returns, risk and timing and examines the relationship between market maturity and agreement. The analysis suggests that at the aggregate level and for many markets, there is substantial agreement on direction, quantity and timing of market change. However, there is substantial variability in the level of agreement among cities. The paper also assesses whether the different data sets produce different explanatory models and market forecast. It is concluded that, although disagreement on the direction of market change is high for many market, the different data sets often produce similar explanatory models and predict similar relative performance.

Capital market expectations and the London office market

The analysis of office market dynamics has generally concentrated on the impact of underlying fundamental demand and supply variables. This paper takes a slightly different approach to many previous examinations of rental dynamics. Within a Vector-Error-Correction framework the empirical analysis concentrates upon the impact of economic and financial variables on rents in the City of London and West End of London office markets. The impulse response and variance decomposition reveal that while lagged rental values and key demand drivers play a highly important role in the dynamics of rents, financial variables are also influential. Stock market performance not only influences the City of London market but also the West End, whilst the default spread plays an important role in recent years. It is argued that both series incorporate expectations about future economic performance and that this is the basis of their influence upon rental values.

The impact of energy performance certificates on the rental and capital values of commercial property assets: some preliminary evidence from the UK

This paper focuses on the effect of energy performance ratings on the capital values, rental values and equivalent yields of UK commercial property assets. Of which a small number are also BREEAM rated, the study is based upon 708 commercial property assets held in the IPD UK Universe drawn from across all PAS segments. Incorporating a range of controls such as unexpired lease term, vacancy rate and tenant credit risk, hedonic regression procedures are used to estimate the effect of EPC rating. The study finds no evidence of a strong relationship between environmental and/or energy performance and rental and capital value. Bearing in mind the small number of BREEAM rated assets, there was a small but statistically significant effect on equivalent yield only. Similarly, there was no evidence that the EPC rating had any effect on Market Rent or Market Value with only minor effects of EPC ratings on equivalent yields. The preliminary conclusion is that energy labelling is not yet having the effects on Market Values and Market Rents that provide incentives for market participants to improve the energy efficiency of their commercial real estate assets.

A critical review of methodologies for measuring rental depreciation applied to UK commercial real estate

Real estate depreciation continues to be a critical issue for investors and the appraisal profession in the UK in the 1990s. Depreciation-sensitive cash flow models have been developed, but there is a real need to develop further empirical methodologies to determine rental depreciation rates for input into these models. Although building quality has been found to be an important explanatory variable in depreciation it is very difficult to incorporate it into such models or to analyse it retrospectively. It is essential to examine previous depreciation research from real estate and economics in the USA and UK to understand the issues in constructing a valid and pragmatic way of calculating rental depreciation. Distinguishing between 'depreciation' and 'obsolescence' is important, and the pattern of depreciation in any study can be influenced by such factors as the type (longitudinal or crosssectional) and timing of the study, and the market state. Longitudinal studies can analyse change more directly than cross-sectional studies. Any methodology for calculating rental depreciation rate should be formulated in the context of such issues as 'censored sample bias', 'lemons' and 'filtering', which have been highlighted in key US literature from the field of economic depreciation. Property depreciation studies in the UK have tended to overlook this literature, however. Although data limitations and constraints reduce the ability of empirical property depreciation work in the UK to consider these issues fully, 'averaging' techniques and ordinary least squares (OLS) regression can both provide a consistent way of calculating rental depreciation rates within a 'cohort' framework.

Which factors drive rental depreciation rates for office and industrial properties?

As new buildings are constructed in response to changes in technology or user requirements, the value of the existing stock will decline in relative terms. This is termed economic depreciation and it may be influenced by the age and quality of buildings, amount and timing of expenditure, and wider market and economic conditions. This study tests why individual assets experience different depreciation rates, applying panel regression techniques to 375 UK office and industrial assets. Results suggest that rental value depreciation rates reduce as buildings get older, while a composite measure of age and quality provides more explanation of depreciation than age alone. Furthermore, economic and local real estate market conditions are significant in explaining how depreciation rates change over time.

Caravan parks as a provider in the affordable housing market

Caravan parks in Australian capital cities have provided a source of housing at the lower end of the market for many years. This includes opportunities for both private rental and home ownership. However, emerging trends in the property market have threatened the viability of caravan parks. In order to maintain or increase income levels, some caravan parks have focused on more profitable short-term tourist opportunities rather than traditional long-term housing. While the closure and conversion of caravan parks raise crucial questions for Australian social and housing policy, there are also implications for the broader property market. This paper examines the changing role of the operation of caravan parks, with the emphasis placed on their economic feasibility. The research is based on a survey of 30 caravan park operators in Queensland, Australia. The factors influencing caravan parks are identified, and suggestions to address the changing role of caravan parks as a provider in the affordable housing market are canvassed.

The misanthropes, larrikins and mallrats of market square: an enduring public space dilemma in central Geelong

Market Square was a public reserve located in the centre of the Victorian regional city of Geelong. It was established by Governor Sir George Gipps during the initial surveying of the area in 1838. The square later became a produce market, before being progressively built upon for public and commercial purposes. Today, the modern Market Square Shopping Centre occupies a substantial portion of the original site. Opened in 1985 by the City of Geelong, the complex initially drew high rental incomes for the Council. However, by the early 1990s revenue began to decline after the collapse of the Pyramid Building Society and competition from the new Bay City Plaza shopping centre (now Westfield) that was built directly opposite. In 1993 the city council decided to sell the complex. Today it remains privately owned and while it adjoins the Little Malop Street Mall which was also part of the original public square, its connection with the surrounding urban environment is poor. The introverted architectural nature of Geelong’s two large retail shopping complexes has significantly altered the city’s spatial dynamic. The traditional intimate urban structure and streetscape has been fragmented. This has led to a deterioration of the city’s social cohesion, sense of place and economic prosperity. This paper chronicles the myriad errors of judgement by the institution of local government that have contributed to this situation. Heeding past mistakes, it explores ways in which the Council might work with private landowners to improve the permeability of the city’s public urban spaces and internalised retail centres for improved use, integration, functionality and resilience. Achieving a shared culture of concern for the city’s urban fabric presents some significant challenges. How might ‘big box’ shopping centres be reconsidered to make a positive contribution to the city’s urban spatial network while remaining commercially viable? The built environment has an important role to play in addressing the problem by presenting opportunities for these new urban institutions to also benefit from stronger connections between the public and private realm.

The Brazilian real state market in 2012: robust growth or speculative bubble?

A forte alta dos imóveis no Brasil nos últimos anos iniciou um debate sobre a possível existência de uma bolha especulativa. Dada a recente crise do crédito nos Estados Unidos, é factível questionar se a situação atual no Brasil pode ser comparada à crise americana. Considerando argumentos quantitativos e fundamentais, examina-se o contexto imobiliário brasileiro e questiona-se a sustentabilidade em um futuro próximo. Primeiramente, analisou-se a taxa de aluguel e o nível de acesso aos imóveis e também utilizou-se um modelo do custo real para ver se o mercado está em equilíbrio o não. Depois examinou-se alguns fatores fundamentais que afetam o preço dos imóveis – oferta e demanda, crédito e regulação, fatores culturais – para encontrar evidências que justificam o aumento dos preços dos imóveis. A partir dessas observações tentou-se chegar a uma conclusão sobre a evolução dos preços no mercado imobiliário brasileiro. Enquanto os dados sugerem que os preços dos imóveis estão supervalorizados em comparação ao preço dos aluguéis, há evidências de uma legítima demanda por novos imóveis na emergente classe média brasileira. Um risco maior pode estar no mercado de crédito, altamente alavancado em relação ao consumidor brasileiro. No entanto, não se encontrou evidências que sugerem mais do que uma temporária estabilização ou correção no preço dos imóveis.

RP97-75 Fixed and Flexible Cash Rental Arrangements for Your Farm

The kind of rental arrangements for cropland vary widely in each locality and from one geographic area to another. What is desirable for one particular landlord/tenant relationship is not acceptable for others. The purpose of this publication is to help tenants and landlords develop fair cash-rent arrangements and assist them in making sound decisions based on a fair evaluation of resources. The first section addresses whether a fixed cash-rent lease arrangement should be used. Part II discusses how to develop a fair fixed cash rental rate, while Part III provides information on setting rent for other cropland, pasture, and buildings. Part IV outlines the advantages and disadvantages of flexible cash-leasing arrangements. Part V discusses the importance of developing a written lease agreement. A sample lease form also is included.

Nebraska Farmland Markets Plateau

After several years of successively rising land values and cash rents, Nebraska’s farmland markets throttled back during 2008. Preliminary results from the University of Nebraska-Lincoln’s 2009 Nebraska Farm Real Estate Market Survey show a clear picture of the market mood turning very cautious in response to the U.S. and global economic downturns. As of February 1, 2009, the weighted average value of Nebraska farmland was $1,424 per acre, identical to the year-earlier level (Figure 1 and Table 1 at end of article). Likewise, estimated 2009 cash rents are stable to slightly down from 2008 levels throughout most of the state.

Key Issues and Developments in Farmland Sales Markets in the EU Member States and Candidate Countries. Factor Markets Working Paper No. 12, February 2012

This paper describes recent developments in sales markets of agricultural land in selected member states of the European Union and its candidate countries. Analysis focuses on the importance of the sales market for agricultural land, the average size of transacted plots, and the evolution and magnitude of the land sales prices. The share of agricultural land sold on the market is relatively stable in most of the old member states, with the exception of Finland, the Netherlands and the UK, where a more dynamic market is observed. For the new member states, the sales market for agricultural land is strongly affected by public sales under the ongoing land privatisation programmes, while strong variation prevails in the private sales market. Substantial differences are also observed in both the average size of the transacted plots and the sales prices. For the latter, price regulations partially explain the heterogeneity in the evolution of sales prices.

Institutional Factors Affecting Agricultural Land Markets. Factor Markets Working Paper No. 16, February 2012

This paper analyses the main institutional factors affecting the rental and sales markets for agricultural land. Particular attention is paid to the effects of the common agricultural policy on land markets, and more specifically the underlying mechanism through which agricultural subsidies are capitalised into land values and farmland rents. This paper also provides a broad overview of the empirical studies that estimate the impact of agricultural support policies on land rents and land prices. Various other fundamental factors that affect agricultural land markets are discussed, such as land market institutions and regulations, transaction costs, credit market constraints and levels of profitability, the legal means of contract enforcement and land use alternatives.

The Empirical Content of the Present Value Model: A survey of the instrumental uses of farmland prices. Factor Markets Working Document No. 53, June 2013

After reviewing the Present Value Model (PVM), in its basic form and with its major extensions, the authors carried out a literature review on the instrumental uses of farm land prices; namely what land prices may reveal in the framework of the PVM. Urban influence, non-market goods and climate change are topics where the PVM used with applied data may reveal farmers’ or landowners’ beliefs or subjective values, which are discussed in this paper. There is also extensive discussion of the topic of public regulations, and how they may affect land price directly, or through its present value.