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Does Agglomeration Enhance Property Value?

delete2026-01-01
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PRE
AI
C
Crocker H. Liu
C
Chen Zheng *
Z
Zhu Bing
DOI：10.1287/mnsc.2023.02773delete
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Abstract

Abstract

En 中文
Does agglomeration within a building and/or neighborhood enhance or weaken property value? The valuation impact is unclear ex ante, given that agglomeration tradesoff enhanced productivity at the expense of a more concentrated tenant base. We find that a value premium exists only when agglomeration at both the building and neighborhood levels consists of firms in the same industry. This premium represents capitalized knowledge spillover externalities. Additionally, we show the stock market rewards real estate investment trusts that transact specialized buildings. The valuation consequences arising from agglomeration in the underlying real estate market are thus consistent with the public real estate market.
Keywords:
agglomeration
knowledge spillover
property value
localization economies

Journal

Management Science cover
Management Science
IF:
4.9
Papers:
780
Citations:
5.0W

Organization

U
university of bath
Scholars:
1.1W
Papers: 1.3W
Citations: 13
T
technical university of munich
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7.1K
Papers: 2.8K
Citations: 1
 
  cornell university
Scholars:
2.3K
Papers: 958
Citations: 0
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