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Income, Value and Returns in Socially Responsible Office Properties

Author

Listed:
  • Gary Pivo

    () (University of Arizona)

  • Jeffrey D. Fisher

    () (Indiana University)

Abstract

This paper compares alternative methods for taking spatial dependence into account in house price prediction. We select hedonic methods that have been reported in the literature to perform relatively well in terms of ex-sample prediction accuracy. Because differences in performance may be due to differences in data, we compare the methods using a single data set. The estimation methods include simple OLS, a two-stage process incorporating nearest neighbors’ residuals in the second stage, geostatistical, and trend surface models. These models take into account submarkets by adding dummy variables or by estimating separate equations for each submarket. Based on data for approximately 13,000 transactions from Louisville, Kentucky, we conclude that a geostatistical model with disaggregated submarket variables performs best.

Suggested Citation

  • Gary Pivo & Jeffrey D. Fisher, 2010. "Income, Value and Returns in Socially Responsible Office Properties," Journal of Real Estate Research, American Real Estate Society, vol. 32(3), pages 243-270.
  • Handle: RePEc:jre:issued:v:32:n:3:2010:p:243-270
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    Citations

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    Cited by:

    1. Ingrid Nappi-Choulet & Aurélien Decamps, 2012. "The impact of energy efficiency and green performance on the value of corporate real estate portfolios," ERES eres2012_145, European Real Estate Society (ERES).
    2. Spenser J. Robinson & Andrew R. Sanderford, 2016. "Green Buildings: Similar to Other Premium Buildings?," The Journal of Real Estate Finance and Economics, Springer, vol. 52(2), pages 99-116, February.
    3. Fuerst, Franz & McAllister, Patrick, 2011. "The impact of Energy Performance Certificates on the rental and capital values of commercial property assets," Energy Policy, Elsevier, vol. 39(10), pages 6608-6614, October.
    4. Alexander Reichardt, 2014. "Operating Expenses and the Rent Premium of Energy Star and LEED Certified Buildings in the Central and Eastern U.S," The Journal of Real Estate Finance and Economics, Springer, vol. 49(3), pages 413-433, October.
    5. Jiro Yoshida & Ayako Sugiura, 2015. "The Effects of Multiple Green Factors on Condominium Prices," The Journal of Real Estate Finance and Economics, Springer, vol. 50(3), pages 412-437, April.
    6. Fuerst, Franz & McAllister, Pat, 2011. "Eco-labeling in commercial office markets: Do LEED and Energy Star offices obtain multiple premiums?," Ecological Economics, Elsevier, vol. 70(6), pages 1220-1230, April.
    7. Ankamah-Yeboah, Isaac & Rehdanz, Katrin, 2014. "Explaining the variation in the value of building energy efficiency certificates: A quantitative meta-analysis," Kiel Working Papers 1949, Kiel Institute for the World Economy (IfW).
    8. Florian Fizaine & Pierre VoyŽ & Catherine Baumont, 2017. "Does the literature support a high willingness to pay for green label buildings? An answer with treatment of publication bias," Policy Papers 2017.03, FAERE - French Association of Environmental and Resource Economists.
    9. Parkinson, Aidan & De Jong, Robert & Cooke, Alison & Guthrie, Peter, 2013. "Energy performance certification as a signal of workplace quality," Energy Policy, Elsevier, vol. 62(C), pages 1493-1505.
    10. Ronan C. Lyons & Sean Lyons & Sarah Stanley, 2015. "The Price Effect of Building Energy Ratings in the Dublin Residential Market," Trinity Economics Papers tep0415, Trinity College Dublin, Department of Economics.
    11. repec:kap:jrefec:v:56:y:2018:i:2:d:10.1007_s11146-017-9598-z is not listed on IDEAS
    12. Parkinson, Aidan & Hill, Stephen & Wheal, Richard, 2016. "An income-based analysis of the value premise for property energy performance," Energy, Elsevier, vol. 106(C), pages 162-169.

    More about this item

    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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