How does the creation of a large, new development affect values of preexisting commercial property?
So a developer made a proposal to put in 1.7 million sqft worth of office, residential, and retail space half a mile away from the building I own. Other developers are also coming in and further developing the area.

So how would all of this new development affect the value of my office building? Anybody have any academic studies I can read?

The new office space will probably be Class A, while mine is C.
[{"id": "cjh764z", "text": "Check the ULI, JSTOR, and other online research databases to help you with your case study. \n\nYou know, I assume, that it will increase the land value of your project, allow you to draft off of rental rate growth, and provide a new base of amenities. It's possible that your project will become functionally obsolete for the demands of the new local tenant base and would likely have a higher and best use that would justify a redevelopment / tear down rebuild.\n\nGood luck.", "replies": [], "depth": 1}, {"id": "cjh7xw5", "text": "Also use REIS, CoStar for Comps. ", "replies": [], "depth": 1}, {"id": "cjhj1jv", "text": "It depends on quite a few factors. Are the new buildings speculative, pre-leased or build-to-suit for users that currently didn't occupy space in the market? If developers are accommodating demand that didn't exist before then it will likely lessen the impact on your property. \n\nA lot of times if an oversupply of new speculative construction comes in and isn't leased shortly after construction the developer will incentive existing users of space in the market to make lateral moves in terms of the amount of space but upward moves in the quality of the space (ie get a tenant to move from a Class B to the new Class A building) if the price is reasonable. This type of situation would likely be bad for your building as some users of Class C space may see this as an opportunity to move into Class B space. \n\nAre there readily available substitute land sites in your area? How depreciated is your building? These are two additional factors that can provide an indication as to the ability of your property hold its value despite the increase in new office building inventory. If sites like the one your building has are rare (flexible zoning, good regional access, etc.) that will bode well for you property maintaining a large portion of its value especially in an active development market. \n\nPM if you need additional assistance. I help property owners with issues like this on a daily basis. Without more detail on the specific market it is difficult to give any definitive answers.\n\nEdit: corrected typo", "replies": [], "depth": 1}, {"id": "cjhqoid", "text": "Where are you located?", "replies": [], "depth": 1}]