Wednesday, August 29, 2012

Parks = $$

So the WSJ has an article today out of some research out of New York City on the value of being located near a park:  Parks Elevate Office Rents   - h/t @otiswhite for catching that.

So just a shout out to a former student who looked at something similar here and quantified the  $$ impact on residential land values resulting from the Nine Mile Run Redevelopment. In the most recent PEQ if you didn't read it (starting on bottom of page 1):  Brownfield, Greenfield: A Hedonic Estimation of the Remediation and Redevelopmentof the Slag Heap at Nine Mile Run

What is a great book topic someday would be to try and measure how the value gradient for being located near a river in the region has changed over the last couple decades. 


3 Comments:

Anonymous MH said...

In the article by Robinson, I can't figure how the model controls for history effects or the effects of other developments (e.g. the Waterfront) when calculating the $405 million dollar increase in residential property values within a mile of Summerset. That figure just seems so high when compared to the value of the houses where the effect was estimated to be the most (i.e. within 500 feet). $400 million would seem to mean much (all?) of the increase in Squirrel Hill South was from Summerset

Wednesday, August 29, 2012 10:07:00 PM  
Blogger C. Briem said...

I believe he had a lot of temporal dummies to address some of that. Also the relative short distances he used should isolate the results from Waterfront impact which I would presume was over a much larger area.

In general though.. think about it. A slag heap is a pretty negative amenity so you might have seen quite a price differential, a negative differential, for property so close.

Thursday, August 30, 2012 7:35:00 AM  
Anonymous MH said...

I'm sure it mades a huge difference in the close properties. But there really aren't many properties within 500 feet of Summerset. A few blocks of Beechwood, Rosemont Lane, Fernwald, and Mt. Royal. Plus the ever popular Guy Street and Duck Hollow. And I'm sure it makes difference, if not as much of a difference in percentage terms, in the whole area. It draws in huge numbers of people who want a place to live and have money.

I'm just wondering about the $405 million figure for the overall increase in residential property values. I was comparing that to the Squirrel Hill South property figures because most of the residential property within one mile of Summerset is in that neighborhood. That is over $50,000 per housing unit in Squirrel Hill South (7,514 per the census report). I'm not saying it isn't possible, but it seems very high.

Thursday, August 30, 2012 9:05:00 AM  

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