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We identify two issues in the work of Ouazad and Kahn (2022). Correcting either reverses the original result. The two changes are to use the correct FHFA conforming loan limits for each county and year and to compare the individual loan amount to that limit correctly. There is no evidence that lenders transfer climate risk by altering loan origination and securitization behavior. None of our results calls into question the value and importance of the O&K model as a test for adverse selection. The question addressed and the setup of the test are important and should be replicated over time. [ABSTRACT FROM AUTHOR]

In urban economics, transportation costs are a key determinant of land value. However, in virtual worlds, these costs are generally limited by the users' ability to teleport. Drawing from urban and attention economic literature, we propose a theoretical model microfounded on user behavior. The model suggests that the relative value of land parcels hinges on their potential to attract visitors. Our empirical analysis supports this by demonstrating that location remains crucial in virtual worlds and highlighting the role of the teleportation threshold. We discuss the model's general applicability, reaffirming the significance of location within most virtual worlds. [ABSTRACT FROM AUTHOR]

With the rapid spread of telecommuting since the COVID-19 pandemic, companies have been relocating to high-end business centers, thereby enhancing the workplace experience for employees, a phenomenon called the "flight to quality." However, this trend’s impact on rents and vacancy rates in individual office buildings has not been extensively studied. To determine the effects of the flight-to-quality phenomenon on individual buildings, we examine the impact of modern amenities, which directly influence employee lifestyles, on rents and vacancy rates in the Tokyo office market. Using a propensity score-based quasi-experimental method, we find that commercial properties with such modern amenities command higher rents and experience lower vacancy rates than those without. The difference in vacancy rates has increased since 2020. However, the significance of these amenities diminishes for properties less competitive in age, size, and location. The results indicate that the "flight to quality" may further polarize the office real estate market into two categories: one for high-end buildings experiencing increasing demand, and another for those with modest amenities experiencing decreasing demand. The findings have implications for office building owners/investors and the government, make educated decisions as to whether to invest in modern amenities, join the quality competition, or encourage urban restructuring.

The article presents the development of the modern warehouse real estate market in Poland (from 2004 to 2022). The reference area is the European market. Against its background, Poland has become a fast-growing bank next to Germany and the fifth largest in terms of modern warehouse space. This happened despite the unstable and unpredictable macroeconomic and political situation in recent years, as well as the dangerous epidemic effects, e.g. connecting supply chains. The article is an attempt to find the sources of success of this Polish phenomenon, the search for a specific spatial configuration of the market and short- and long-term perspectives for the development of the warehouse market in Poland.

Purpose: The article aims to analyze the behavior of commercial real estate prices in Europe, with a focus on the post-coronavirus disease 2019 (COVID-19) pandemic period. The authors use national and city-level data for the various commercial real estate sectors in ten countries, as well as listed real estate data, to assess any differences across property type and space. Design/methodology/approach: The authors analyze the behavior of commercial real estate prices after the COVID-19 pandemic, emphasizing differences across property types. For that purpose, the authors use national and city-level direct real estate data for the ten largest countries in terms of market capitalization, as well as listed real estate data. The article then turns to discussing the likely trajectory of commercial real estate prices in the future. Findings: The recent rise in interest rates and geopolitical instability have affected prices differently across sectors. Industrial properties benefited from the pandemic, although prices declined significantly in 2022. Residential properties continued their upward price trend and have been the best-performing property type during the last two decades. Retail real estate continued its downward price trajectory. Thus far, office markets do not appear to be significantly affected by structural changes in the sector. The data for listed real estate markets in Europe suggest that markets bottomed out in early 2023. Originality/value: This paper provides for a better understanding of the behavior of commercial real estate prices in Europe since the COVID-19 pandemic. The authors assess whether the effects found during the COVID-19 crisis were temporary or long-lasting. Also, many economic and political uncertainties have emerged since the beginning of the Ukraine war in February 2022, and it is important to analyze the effects of such uncertainties on commercial real estate prices. [ABSTRACT FROM AUTHOR]

Highway construction occurs nowadays mainly through widening of existing roads rather than building new roads. This article documents that highway widenings considerably reduce congestion in the short run, defined here as 6 years. Using longitudinal microdata from highway detector loops in the Netherlands, we find substantial travel time savings. These savings occur despite strong increases in traffic flow. The welfare benefits in the short run already cover 40% of the widenings' investment costs. Our article contributes to an explanation why countries invest in roadworks even when the fundamental law of congestion predicts that travel savings disappear in the long run. [ABSTRACT FROM AUTHOR]

The relevance of the chosen topic is confirmed by the increased competition among the participants of the commercial real estate market, which is connected with the market saturation. The study aims to assess the impact of modern digital technologies on the performance of a shopping and entertainment center. Research was conducted using the example of a retail and entertainment center in Saint-Petersburg. The work proposes a “smart” approach to management, where additional investments are taken into account when the digital infrastructure is being created. The research shows that the transition from a traditional business management to a “smart” variant of property object‘s development, based on the active use of digital technologies, leads to a significant increase in its capitalization, traffic, average bill and occupancy by tenants. The novelty of the following work is to justify the economic efficiency of the application of digital technologies‘ in retail based on the calculation of the retail and entertainment center‘s capitalization value change under the influence of the implementation of automated accounting. The presented research can be used to develop a methodology for assessing the impact of the introduction of digital technologies on the efficiency of shopping and entertainment facilities.

For a long time, social factors have been identified as a set of crucial determinants of residential location choice and property value. Here, safety and security issues constitute a significant issue. Inhabitants are traditionally concerned about their neighborhoods and housing locations, and, considering current problems in big Western cities, this concern is by no means lessening. The study presents a social innovation for assisting the search for safe housing environments. A list of quantifiable key features regarding negative externalities and actual criminality provides the basis for constructing a checklist for the comparison of safe places within a city, or comparing cities with respect to their safety for housing occupants, investors, developers and other stakeholders. The controversial nature of the argumentation notwithstanding, this method is suggested to prove valuable in circumstances marred by increasing social hazards and turmoil.

We present new empirical evidence that higher customer concentration leads to lower corporate real estate holdings at the supplier firm level. Further evidence shows that this effect is causal and more pronounced when the likelihood/impact of losing primary customers is higher or when suppliers have less bargaining power. Finally, we show that firms with a concentrated customer base tend to choose capitalized leasing in lieu of holding real estate. [ABSTRACT FROM AUTHOR]

Subject and purpose of work: Based on community-wide charges that shopping malls discriminate against small business tenants, this paper seeks: firstly to identify the principal determinants of shopping mall rentals, and secondly to understand if there exists a statistically significant dispersion in rentals against MSMEs.

Instruction cues are widely employed for research on neural mechanisms during movement preparation. However, their influence on brain connectivity during movement has not received much attention. Herein, 15 healthy subjects completed two experimental tasks including either instructed or voluntary movements; meanwhile electroencephalogram (EEG) data were synchronously recorded. Based on source analysis and related literature, six movement-related brain regions were selected, including the left/right supplementary motor area (SMA), left/right inferior frontal gyrus (iFg), and left/right postcentral gyrus (pCg). After assuming 10 a priori models of regional brain connectivity, we evaluated the optimal connectivity model between brain regions for the two scenarios using the dynamic causality model (DCM). During voluntary movement, the movement originated in the SMA, passed through the iFg of the prefrontal lobe, and then returned to the main sensory cortex of the pCg. In the instructed movement, the movement originated in the iFg, and then was transmitted to the pCg and the SMA, as well as from the pCg to the SMA. In contrast to the preparation process of voluntary movement, there were long-range information interactions between the iFg and pCg. Further, almost the same brain regions were active during movement preparation under both voluntary and instructed movement tasks, which evidences certain similarities in dynamic brain connectivity, that is, the brain has direct connections between the bilateral SMA, bilateral pCg, and bilateral SMA, indicating that the both brain hemispheres work together during the movement preparation phase. The results suggest that the network during the preparation process of instructed movements is more complex than voluntary movements. [ABSTRACT FROM AUTHOR]

As expectations change, we may observe asymmetry in responses of economic agents over various phases of the economic cycles. In this paper, we analyze both demand and supply side information to understand the dynamics of price determination in the real estate market and examine the relationship between expectation parameters and demand-supply mismatch. Our hypothesis builds on the possibility that investors' call for action in terms of their buy/sell decision and adjustment in reservation prices may provide valuable insights into impending demand-supply imbalances in the market. We study several real estate sectors to inform our analysis. The timeframe of our analysis (1995–2010) allows us to observe market dynamics over several economic cycles. We test our hypothesis variously using several measures of market activity within a structural panel VAR framework. Our analysis suggests that investors' attitude may have substantial and statistically significant feedback effects in price determination. These results indicate noticeable asymmetry in responses during the boom, normal and recessionary periods. [ABSTRACT FROM AUTHOR]

Determining the impact of individual attributes on the value or price of real estate in business practice poses many problems. One of the solutions to this problem is the use of statistical methods. The article proposes correlation coefficients (and their partial modifications) that can be used to determine the impact of selected features on the value of real estate. In addition, several procedures were taken into account for the factors in further calculations, using different methods for determining weights. Empirical verification of the proposed solutions was based on the mass valuation of land properties. The obtained results were compared with valuations developed by property appraisers and valuation errors were calculated. Based on valuation errors, the proposed methods of calculation procedures were ranged, indicating those which provide results closest to the individual valuations carried out by property appraisers.

Research background: The issues undertaken in the paper include the specification of an econometric model in real estate mass appraisal. Advantages and disadvantages of using econometric models in real estate mass appraisal are discussed.

Variables occurring in a real estate market are frequently presented on scales other than interval or ratio scales. Most frequently, the scale is an ordinal (for instance – onerous, unfavourable, neutral, favourable), or possibly a nominal one. That is why the use of scales intended for quantitative attributes (such as Pearson linear correlation coefficient) is not possible. The paper presents the results of employing other coefficients (Kendall’s τB and Spearman’s ρ coefficients) in analyzing correlations on the real estate market.

The hidden vacancy rate reflects the adjustments of the market vacancy rate that may occur in the future, in the event of a change in market conditions. Its occurrence results from the fact that the current level of rented office space reflects the demand based on past levels of rent and past predictions of changes in the tenants’ demand for space during the term of the lease. Thus, the level of total, occupied office space at given moment does not result from demand based on the current market rent. This is the result of the duration of lease agreements concluded for more than one period. The hidden vacancy rate is also related to the costs of searching for office space that meets the specific criteria of tenants, removal costs and office space adaptation costs. The hidden vacancy rate cannot be observed in the market, but can be determined based on available market data.

The article aimed to determine (1) what factors affect the rates of property management fees (2) and to examine whether the rates declared by managers can be an essential factor in the segmentation of the property management services market. The research has been divided into two stages. First, the review of the literature allowed us to elaborate a list of factors affecting the rates for property management fees. Then, the research was based on the analysis of the results of questionnaires obtained from property managers. We gathered a sample of 368 responses, which enabled us to use the analysis of variances. This statistical method was utilized to answer the second research question.

This paper aims to review subject-matter literature and analyse the development policy documents of major Polish cities addressing the issue of climate change adaptation (urban adaptation plans, Polish abbr. MPA) and concerning the real estate sector; it is also an attempt to draw conclusions and identify potential benefits and challenges that the construction sector is currently facing. The literature focuses on coastal real estate, costs, benefits and barriers in the adaptation of buildings. MPAs point to the significant role of the real estate sector in adapting to climate change. Soft and hard instruments are becoming increasingly important in MPA. These are spatial planning (building restrictions in hazardous areas, use of green roofs in investments), a system of incentives for investors to promote adaptation activities, ecological education, investments in improving the energy efficiency of buildings. Also identified are the benefits to the real estate sector, e.g. the growing importance of occupations on the real estate market, the development of innovations and increased access to cheaper services and technologies. In Polish cities, high-intensity residential areas are characterized by high sensitivity. MPAs will strengthen the resilience of the city’s technical infrastructure and public space, as well as develop blue and green infrastructure, which may translate into the increased resilience of real estate.

SEO100c, an EO-polymer, has been reported of having an r33 in excess of 100 pm/V. Experimental poling research was performed on rib waveguide modulator for device design and development. Reported is the determination of the impact that temperature and voltage have on the poling of a SEO100c waveguide device in order to maximize the r33 while avoiding damage to the device structure ensuring high yield in manufacture. The poling process is shown to have a nonlinear relationship between r33 and poling field aiding in the selection of achievable poling voltages for required r33 values. Device thermal stability is quantified and reported for the complete poling process and the impacts upon r33. Investigation into the possible relaxation of device r33 is measured over an extended period demonstrating desirable use within deployable devices. [ABSTRACT FROM AUTHOR]

While being largely confined to different realms, planning and real estate also have a symbiotic relation. The logic of this relation varies in time and space, which makes the analysis of the balance between the two fields challenging. When we define these actions as institutions, potentially powerful analytic tools become available. This critical literature review examines some of the most relevant of them, in various specific institutional arenas, including the impact of planning on property markets and prices. The aim is to examine the role of institutions at the interface of urban planning and real estate. In other words, to see what kind of institutional effects are identifiable, whenever planning and property interests overlap. The conclusions suggest that a change in the urban fabric is likely to impact the possibility to use a site, and thereby also the value of land and built property.

The income approach is the subject of debates conducted by academics and practitioners as one of the most controversial approaches in valuation practice. It is also somewhat differently understood by the three historically shaped valuation schools (US, British and German). This article compares the main assumptions underpinning the income approach’s investment method between the three schools in order to: 1) determine why the assumptions change and in what direction; 2) assess the advantages and disadvantages of explicit cash flows; and 3) evaluate the advisability of incorporating explicit cash flows into Polish valuation methodology. A thesis is formulated that, in Poland, the investment method should use implicit cash flows for estimating the market value of properties. There is a need to include explicit cash flow in university programs, but their use should be limited to valuations undertaken to determine the investment value of a property or the market value of portfolio properties, as well as valuations carried out for the purposes of financial reporting as required by EU legislation (MSSF 13 and MSR 40).

A statistical method of defining the impact of real estate attributes based on individual capacities of Hellwig’s information carriers was proposed in the paper. The method may be used for defining the impact of attributes in the Szczecin algorithm of real estate mass appraisal. The proposed procedure refers to the so-called Hellwig’s method, used for the selection of explanatory variables in an econometric model. In the case of real estate attributes, we typically deal with variables measured on an ordinal scale. Therefore, Kendall’s tau coefficients (tau a, tau b, tau c) will be applied in order to determine the strength and direction of a relation between variables. These coefficients enable the measuring of the strength and direction of a relation between variables measured on an ordinal scale. After valuating proper matrices of Kendall’s tau coefficients, individual capacities of Hellwig’s information carriers were determined, on the basis of which the impact of attributes in the Szczecin algorithm of real estate mass appraisal was defined. The proposed procedure was supported with an empirical example using a real data base that comprises 99 undeveloped land properties of industrial designation, including depots, storehouses, warehouses, and yards. After determining the impact of each attribute, the Szczecin mass appraisal algorithm was used to evaluate values. The obtained real estate values were very close to the values obtained by real estate experts.

Under the provisions of the standard Valuation to Secure Debt made by the Polish Federation of Valuers’ Associations, in preparing the appraisal report for this purpose, the valuer, among other things, is “obligated to identify risk areas related to the property concerned, including the anticipated changes in the property market and the risk related to how the property is assessed by investors”. The article discusses the assessment of the risk of incomes generated by a commercial property which is to constitute loan security. Factors influencing the variability of incomes taken into consideration in the income approach to property valuation are subject to detailed analysis. The article analyses the assessment of the risk of earning income different from that expected from the property constituting loan security with the use of statistical measures. The main purpose of the article is to propose the application of statistical measures for income risk assessment. Auxiliary goals are listing the factors which influence the variability of incomes in property valuation and characteristic features of modern office space in the Polish Tricity (i.e. Gdansk, Sopot, Gdynia) near the Baltic Sea, with the analysis of rents and vacancies. The article analyzes data from the Tricity property market over the period 2009 – 2016.

The paper presents procedures for determining market values of forest real properties, with particular emphasis placed on the forest stand. The mixed-approach valuation procedure - land valuation index method - was analyzed. The practical part of the work regarding the valuation of the forest stand introduces the various techniques of valuation and acquisition of data on forest resources used, i.e.: index-based valuation approach and stock survey approach.

This paper investigates whether corporate diversification by property type and by geography reduces the costs of debt capital. It employs asset-level information on the portfolios of U.S. REITs to measure diversification and looks at two of their main sources of debt capital: 1,173 commercial mortgages and 952 bank loans. The paper finds that diversification across different property types does indeed dependably reduce the cost of these different types of debt. The effect is about 7 basis points for bank loans if a firm's property Herfindahl Index is lowered by one standard deviation and this effect gets stronger for REITs with worse financial health – as measured by the interest coverage ratio. The corresponding effect for commercial mortgages is around 22 basis points for collateral diversification by property type. After the crisis, the salience of the collateral asset increases. For diversification across regions, we do not find a consistent relationship between real asset diversification and loan pricing. [ABSTRACT FROM AUTHOR]

Constructing a novel database on the real-estate holdings of public firms, we show that distressed firms sell their real-estate assets at a discount relative to healthy firms. We find that distress discount in real-estate assets is less pronounced for sellers with less liquidity-constrained industry peers and in machinery-heavy industries. We also document that asset redeployability and the availability of potential buyers are two important property-specific determinants of the distress discount. Additionally, firms' property portfolios that are less redeployable with less potential buyers exacerbate the negative impact of financial distress on the cost of borrowing. [ABSTRACT FROM AUTHOR]

This study had two objectives: first, to evaluate the historical performance of urban land prices across 20 prominent U.S. metro markets; and second, to determine if urban land prices are a leading indicator for prices in the built environment. Using a time-varying econometric model with spatial controls, we constructed constant-quality metropolitan-level land price indices. We found that 1) from 2000 to 2017 (18 years) national residential and commercial-industrial urban land prices appreciated by 2.08% and 1.87% annually, respectively; 2) urban land prices exhibited greater volatility compared with improved property prices; 3) in many metro markets land prices began to decline before improved property prices leading up to the Great Recession; and 4) land prices were slower to recover after the Great Recession compared with prices in the built environment. Using Granger Causality tests on the national urban land market, we found evidence that from the peak of the market in 2007 through 2017, land prices were a leading indicator of prices in the built environment. [ABSTRACT FROM AUTHOR]

The countries in Central-Eastern Europe have been subjected to dynamic economic changes. Researchers from Poland and Slovakia study the history of the creation of and rules by which the real estate appraiser’s profession functions. They also present the methodological basics for property appraisals. The original value of this article is a comparative analysis depicting the similarities and differences occurring in the research area, in two countries from the same region of Europe. The analysis may also influence the methodological discussions of specialists concerning the correctness and purpose of certain approaches, methods or techniques of property appraisal.

SEO100c, an EO-polymer, has been reported of having an r33 in excess of 100 pm/V. Experimental poling research was performed on rib waveguide modulator for device design and development. Reported is the determination of the impact that temperature and voltage have on the poling of a SEO100c waveguide device in order to maximize the r33 while avoiding damage to the device structure ensuring high yield in manufacture. The poling process is shown to have a nonlinear relationship between r33 and poling field aiding in the selection of achievable poling voltages for required r33 values. Device thermal stability is quantified and reported for the complete poling process and the impacts upon r33. Investigation into the possible relaxation of device r33 is measured over an extended period demonstrating desirable use within deployable devices.