[CPEO-BIF] Impact of Contamination on Property Values

[Lenny Siegel <lsiegel@cpeo.org>]

From "Schnapf, Lawrence" <Lawrence.Schnapf@srz.com>


In one of my prior emails, I mentioned a study that had shown the 
impacts of contamination on property values were temporary in nature and 
often rebounded once a cleanup was announced. This was to counter the 
idea that disclosure would necessarily stigmatize sites.

There was a more recent "mega-study" of other studies that I will 
forward in a separate email.

Larry


Environmental Contamination and Industrial Real Estate Prices
Author: Thomas O. Jackson

Start Page: 179
End Page: 200
Volume: 23
Issue Number: 01/02
Year: 2002
Publication: Journal of Real Estate Research

Abstract: This article is the winner of the Industrial Real Estate 
manuscript prize (sponsored by Society of Industrial and Office 
REALTORS) presented at the American Real Estate Society Annual Meeting. 
This article examines the effects of environmental contamination on the 
sales prices of industrial properties. Two general questions are 
addressed. The first is the extent to which sales prices may be impacted 
by contamination. The second is whether sales price effects due to 
contamination persist subsequent to the remediation of previously 
contaminated industrial properties. Using data on industrial property 
sales in Southern California, this study estimates sales price models 
that address these two questions. The results show that there are 
statistically significant impacts on property values in the period 
before and during remediation, but that these effects dissipate 
subsequent to cleanup.

For the original abstract and a link to the entire report, go to
http://business.fullerton.edu/finance/journal/papers/abstract/past/av23n0102/v23n0102a10.htm

--


Lenny Siegel
Executive Director, Center for Public Environmental Oversight
a project of the Pacific Studies Center
278-A Hope St., Mountain View, CA 94041
Voice: 650/961-8918 or 650/969-1545
Fax: 650/961-8918
<lsiegel@cpeo.org>
http://www.cpeo.org




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