TY - JOUR
T1 - Mixed uses and the redevelopment option
AU - Childs, Paul D.
AU - Riddiough, Timothy J.
AU - Triantis, Alexander J.
PY - 1996
Y1 - 1996
N2 - This paper considers how the potential for mixing uses and redevelopment impact property value. Operating flexibility of this type is found to significantly increase property value when the correlation between payouts from different property types is low or when redevelopment costs are low. The ability to mix uses and redevelop over time is also shown to affect the timing of initial land development. The shape of the development boundary is shown to differ considerably depending on whether marginal revenue is constant or decreasing to scale. Both policy and empirical implications concerning the effects of multiple-use zoning are discussed.
AB - This paper considers how the potential for mixing uses and redevelopment impact property value. Operating flexibility of this type is found to significantly increase property value when the correlation between payouts from different property types is low or when redevelopment costs are low. The ability to mix uses and redevelop over time is also shown to affect the timing of initial land development. The shape of the development boundary is shown to differ considerably depending on whether marginal revenue is constant or decreasing to scale. Both policy and empirical implications concerning the effects of multiple-use zoning are discussed.
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U2 - 10.1111/1540-6229.00693
DO - 10.1111/1540-6229.00693
M3 - Article
AN - SCOPUS:0039925956
SN - 1080-8620
VL - 24
SP - 317
EP - 339
JO - Real Estate Economics
JF - Real Estate Economics
IS - 3
ER -