Mixed-Uses and the Redevelopment Option

REAL ESTATE ECONOMICS, Vol. 24 No 3

Posted: 28 Apr 1998

See all articles by Paul D. Childs

Paul D. Childs

University of Kentucky

Timothy J. Riddiough

University of Wisconsin - School of Business - Department of Real Estate and Urban Land Economics

Alexander J. Triantis

Johns Hopkins University - Carey Business School; University of Maryland - Robert H. Smith School of Business

Abstract

This paper considers how the potential for mixing uses and redevelopment impact property value. Operating flexibility of this type is found to significantly increase property value when the correlation between payouts from different property types is low or when redevelopment costs are low. The ability to mix uses and redevelop over time is also shown to affect the timing of initial land development. The shape of the development boundary is shown to differ considerably depending on whether marginal revenue is constant or decreasing to scale. Both policy and empirical implications concerning the effects of multiple-use zoning are discussed.

JEL Classification: R14

Suggested Citation

Childs, Paul David and Riddiough, Timothy J. and Triantis, Alexander J., Mixed-Uses and the Redevelopment Option. REAL ESTATE ECONOMICS, Vol. 24 No 3, Available at SSRN: https://ssrn.com/abstract=9119

Paul David Childs

University of Kentucky ( email )

College of Business & Economics
Lexington, KY 40506-0034
United States
606-257-2490 (Phone)
606-257-9688 (Fax)

Timothy J. Riddiough (Contact Author)

University of Wisconsin - School of Business - Department of Real Estate and Urban Land Economics ( email )

School of Business
975 University Avenue
Madison, WI 53706
United States
608-262-3531 (Phone)
608-265-2738 (Fax)

Alexander J. Triantis

Johns Hopkins University - Carey Business School ( email )

100 International Drive
Baltimore, MD 21202
United States

University of Maryland - Robert H. Smith School of Business ( email )

Department of Finance
College Park, MD 20742-1815
United States
301-405-2246 (Phone)
301-314-9157 (Fax)

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