Pricing Factors of CRE
Hello! I am a planning graduate student and my thesis is about the impact of LRT on commercial office and retail prices in terms of rent and transaction. Do you have any recommended journal articles or a list of factors for pricing besides say location and quality ? ie would density count, being in a TOD area etc?
[{"id": "fn7lnja", "text": "LRT?", "replies": [{"id": "fn7qia9", "text": "Light rail transit, so a subway above ground,\nPortland, Edmonton, Calgary all have them.", "replies": [], "depth": 2}], "depth": 1}, {"id": "fn7s48l", "text": "Perhaps you could do a historical comparison of rent rates in a few locations pre and post LRT connection (inflation adjusted of course)?", "replies": [{"id": "fn7ua3j", "text": "Trying to do that for Kitchener Waterloo... thing is I wanna also filter out factors like population growth, interest rates and density increasing. I'm wondering what factors CBRE for example would look for when pricing the square footage of place.\ncheers", "replies": [{"id": "fn7uw25", "text": "Ah I see, sorry didn\u2019t quite get the right end of the stick - would recommend getting into the library and tracking down a few CRE appraisal books, maybe contacting local CRE firms in your areas of study and asking what factors they consider. \n\nWorth considering you need to contextualise you\u2019re research within other aspects too, tax zoning changes, number of business licences issued (consumer demand), major infrastructure development outside of LRT, development of new localised suburbs etc will all impact on the price - need to figure out a methodology for discriminating LRT as the driving factor.\n\nJust some food for thought hey! Best of luck, in the self-storage game myself so can\u2019t talk too much on CBRE.", "replies": [{"id": "fn7vcg5", "text": "Self storage eh, I met someone in Portugal 4 years ago who made so much money in bitcoin he was able to travel the world for 2 years. He told me that people will always need self storage and to invest in it. \nOn a side note, Toronto and Vancouver because of their population growth rates and limited land for development given anti sprawl policies, a good investment I think...", "replies": [{"id": "fn7yetp", "text": "Self-Storage effectively the only Real Estate that booms in recession!\n\nMy mindset is simple: If it\u2019s got a military base / a college / a major road / and a population over 50k you will always have demand... personally I find major cities have such a large upfront capital requirement for self-storage that I can scale up my portfolio quicker shooting for mid-sized cities. (Also in Europe for context)", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}, {"id": "fn8os5i", "text": "Hedonic modeling techniques would help you there. You would need a large data sample to make it work. PM me and I could get you some information.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fn7u7ze", "text": "There was a uli piece about 10 years ago. It found that if your house is like 50 feet away it super negatively impacted the sales pics, if it was 1000 feet or less away prices went up for retail and multi family and if it was more than that there was little to no impact. \n\nLook at tod studies, the uli has a hard on for transit oriented development.", "replies": [{"id": "fn7ue2f", "text": "I have a paper that has a few of them, it's funny becuase San Diego had a large price in crease and LA lost money, Cervero is a really good author at this but I will try to find that ULI paper. thanks !", "replies": [], "depth": 2}], "depth": 1}, {"id": "fn8inz8", "text": "Research the subject of Transit Villages I the urban &amp; suburban cities &amp; towns in North Jersey. Also google Richard Florida, author of several books on urban development and redevelopment as well as being the editor of the website City Living, which will also provide great insight.", "replies": [], "depth": 1}]