Price Indexes for Commercial and Office Properties: An Application of the Assessed Value Method

Posted: 14 May 1999

See all articles by G. Donald Jud

G. Donald Jud

University of North Carolina (UNC) at Greensboro - Department of Accounting and Finance

Daniel T. Winkler

University of North Carolina (UNC) at Greensboro - Department of Accounting and Finance

Abstract

This study constructs a nonresidential, constant-quality price index, based on the assessed-value approach, and adjusts for the possibility for sample selection bias. The sample consists of a large sample of commercial and office properties located in Charlotte, N.C. during 1981-1994. Statistical tests for sample selection bias suggest that bias is present in the office sample, but not in the commercial property sample. For office properties, the selection process is such that higher prices prevail for equivalent office properties that sell relative to those that do not sell. The estimated price indexes indicate average appreciation rates of 16.2% for commercial property and 9.9% for office property.

JEL Classification: R33

Suggested Citation

Jud, G. Donald and Winkler, Daniel T., Price Indexes for Commercial and Office Properties: An Application of the Assessed Value Method. Journal of Real Estate Portfolio Management, Vol. 5, Issue 1, April 1999. Available at SSRN: https://ssrn.com/abstract=152988

G. Donald Jud (Contact Author)

University of North Carolina (UNC) at Greensboro - Department of Accounting and Finance ( email )

P.O. Box 26165
Greensboro, NC 27412
United States
336-334-3091 (Phone)
336-334-4141 (Fax)

Daniel T. Winkler

University of North Carolina (UNC) at Greensboro - Department of Accounting and Finance ( email )

Greensboro, NC 27412
United States
336-256-0122 (Phone)

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