This article concludes that industrial properties with known unremediated contamination transact at prices 30% less than properties without known contamination issues, and subsequent to remediation, recover to values similar to those without known contamination issues.

Comment: After reading this artice a couple of times, I’m quite sure I’ll never understand all of the statistical modeling behind it’s methodology and conclusions. One thing I do understand is that if any of our readers are even remotely interested in talking with an appraiser who knows about environmentally distressed properties, they absolutely must call Thomas Jackson (http://www.real-analytics.com/). I have to believe he is the, or at least one of the, top specialist(s) in the world at being able to combine appraisal of industrial real values (this alone is a very complex issue, when done correctly with regression analysis, researching all the appropriate attributes of value) with the the additional task of seeking out the scarce information available on transactions for contaminated land, and analyzing them both and making conclusions in such a logical and defensible manner.

Download Article Directly - Download env_contamination_re_prices.pdf

Link to - The Journal of Real Estate Research http://cbeweb-1.fullerton.edu/finance/journal/papers/abstract/past/av23n0102/v23n0102a10.htm

Link to - Thomas Jackson - Real Property Analytics, Inc. - http://www.real-analytics.com/‘, ‘Environmental Contamination and Industrial

This entry was posted on Monday, August 6th, 2007 at 10:33 am and is filed under ●Brownfields 101, ●Brownfields Academia, ●Brownfields Developer's Corner.

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