Applying the Depreciated Replacement Cost Method When Assessing the Market Value of Public Property Lacking Comparables and Income Data

Enrico Fattinnanzi, Giovanna Acampa, Fabrizio Battisti, Orazio Campo and Fabiana Forte
Additional contact information
Enrico Fattinnanzi: “Valori e Valutazioni” Journal of SIEV Italian Real Estate Appraisal and Investment Decision Society, Piazza Farnese 44, 00186 Rome, Italy
Giovanna Acampa: Faculty of Engineering and Architecture, Kore University of Enna, Viale delle Olimpiadi, 94100 Enna, Italy
Fabrizio Battisti: Faculty of Architecture (Department of Architecture), University of Florence, Via della Mattonaia 14, 50121 Florence, Italy
Orazio Campo: Department of Planning, Design, and Technology of Architecture, Sapienza University of Rome, Via Flaminia 72, 00196 Rome, Italy
Fabiana Forte: Department of Architecture and Industrial Design, University of Campania “Luigi Vanvitelli”, Via San Lorenzo ad Septimum, 81031 Aversa, Italy

Sustainability, 2020, vol. 12, issue 21, 1-22

Abstract: The growing interest in the enhancement, management, and sale of public building stock has increased the importance of their valuation and, as a result, the need to identify suitable methods for estimating value that take into account their peculiarities. They often boast architectural features (interfloor distance, layout, finishings, types of wiring/heating systems, etc.) that make them ‘extraordinary’ assets; in some cases, these features also endow them with monumental and/or historical importance. Thus, when valuating, it is necessary to adopt suitable methods. Where comparable examples or income-based parameters specifically concerning buildings with special features are lacking, the Depreciated Replacement Cost (DRC) method is the only system that can be used to estimate their market value. This paper aims to show how the DRC method can be applied in this specific market. The theoretical part will be coupled with a practical section where the DRC method will be used to estimate the market value of an extraordinary landmark building in Rome (Italy), the Palazzo degli Archivi di Stato (the State Archives building), in the EUR district, sold by EUR S.p.A. group (formerly known as Ente EUR) in 2015.

Keywords: appraisal; market value; depreciated replacement cost; cost approach; public real estate (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.mdpi.com/2071-1050/12/21/8993/pdf (application/pdf)
https://www.mdpi.com/2071-1050/12/21/8993/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:12:y:2020:i:21:p:8993-:d:437160

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().