Valuation of the Effects of Asbestos on Commercial Real Estate

Jeffrey D. Fisher (), George H. Lentz and K.S. Maurice Tse
Additional contact information
Jeffrey D. Fisher: Center for Real Estate Studies Indiana University Bloomington, Indiana 47405, http://www.indiana.edu/~cres/welcome.htm
George H. Lentz: School of Business Indiana University Indianapolis, Indiana 46202, http://bus.iupui.edu/
K.S. Maurice Tse: School of Business Indiana University Indianapolis, Indiana 46202, http://bus.iupui.edu/

Journal of Real Estate Research, 1992, vol. 7, issue 3, 331-350

Abstract: This study develops a valuation procedure and a model for estimating the impact of the presence of asbestos-containing materials (ACMs) on real estate income property. A key aspect of the valuation procedure is that the value of a property with asbestos, and hence the value adjustment for the presence of asbestos, depends on the optimal strategy for dealing with the asbestos. Value-maximizing conditions are derived from the model for determining if and when removal should occur. Information obtained from a survey of real estate appraisers provides data for parameterizing the model for the purpose of simulating the effects of ACMs on the value of different categories of property.

JEL-codes: L85 (search for similar items in EconPapers)
Date: 1992
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Citations: View citations in EconPapers (1)

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