Contaminated properties, trespass, and underground rents

Andy Krause, Ron Throupe, John Kilpatrick and Will Spiess

Journal of Property Investment & Finance, 2012, vol. 30, issue 3, 304-320

Abstract: Purpose - This paper seeks to extend the literature on property damage assessment by incorporating the right of exclusion as a compensable component to damages. The paper aims to go on to illustrate methodologies to estimate as a rent this damage component. Design/methodology/approach - The authors develop a conceptual framework from which to examine the value of underground storage space with special reference to situations in which migrating contamination from commercial operations have invaded private real property. Specifically they view this invasion as a compensable violation of the right of exclusion. This underground storage analysis uses the three approaches common to traditional appraisal (income, sales and cost) to estimate the value of underground storage caused by migrating contamination. Findings - Conceptually the paper finds that underground storage can be easily valued with existing appraisal methods. Using contamination scenarios paired with actual market data from the South‐Eastern USA, the paper shows an example of each of the three methods for valuation. It concludes by reconciling the estimated values and supply additional issues to consider when valuing underground storage. Practical implications - Contaminated properties analysis and damages have focused on the right of transfer when estimating damages to real property. Other portions of the bundle of rights also require examination. Originality/value - This is the first discussion of underground trespass in relation to contaminated property coupled with an empirical example to address the right of exclusion and estimated rents due for use of adjacent properties as a storage facility.

Keywords: Underground; Rents; Rental value; Trespass; Storage; Migration; Property rights (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

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:eme:jpifpp:v:30:y:2012:i:3:p:304-320

DOI: 10.1108/14635781211223842

Access Statistics for this article

Journal of Property Investment & Finance is currently edited by Nick French

More articles in Journal of Property Investment & Finance from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().