Abstract
The Journal of Sustainable Real Estate Property Values and Environmental Factors Special Edition Co-sponsored by the American Real Estate Society and the Land Economics Foundation Volume 6 Number 1 E d i t o r i a l B o a r d S e n i o r E d i t o r N o r m a n G . M i l l e r U n i v e r s i t y o f S a n D i e g o A s s o c i a t e E d i t o r s K w a m e A d d a e - D a p a a h A s i a - P a c i fi c E d i t o r N i c o B . R o t t k e E u r o p e a n E d i t o r E u r o p e a n B u s i n e s s S c h o o l R o b e r t S i m o n s N o r t h A m e r i c a n A s s o c i a t e E d i t o r C l e v e l a n d S t a t e U n i v e r s i t y G u e s t E d i t o r s F r a n k A . C l a y t o n C e n t r e f o r U r b a n P o l i c y a n d L a n d D e v e l o p m e n t / R y e r s o n U n i v e r s i t y D a n i e l W i n k l e r U n i v e r s i t y o f N o r t h C a r o l i n a – G r e e n s b o r o M i c h e l B o u d r i a s I s a a c M e g b o l u g b e U n i v e r s i t y o f S a n D i e g o J o h n s H o p k i n s U n i v e r s i t y S t e v e n B o u r a s s a H e l e n N e i l l U n i v e r s i t y o f L o u i s v i l l e U n i v e r s i t y o f N e v a d a – L a s Ve g a s P e r n i l l e C h r i s t e n s e n A n d r e w J . N e l s o n U n i v e r s i t y o f Te c h n o l o g y – S y d n e y R R E E F R e a l E s t a t e S o fi a D e r m i s i G a r y P i v o U n i v e r s i t y o f Wa s h i n g t o n U n i v e r s i t y o f A r i z o n a T i m D i x o n D a r r e n P r u m U n i v e r s i t y o f R e a d i n g F l o r i d a S t a t e U n i v e r s i t y F r a n k F u e r s t R i c h a r d R e e d C a m b r i d g e U n i v e r s i t y D e a k i n U n i v e r s i t y A n g e l a G u g g e m o s S t e p h e n R o u l a c C o l o r a d o S t a t e U n i v e r s i t y R o u l a c G l o b a l L L C R e b e c c a H e n n K a r l - We r n e r S c h u l t e P e n n s y l v a n i a S t a t e U n i v e r s i t y U n i v e r s i t y o f R e g e n s b u r g J e r r y J a c k s o n G r a n t I . T h r a l l S m a r t G r i d R e s e a r c h C o n s o r t i u m , B u s i n e s s G e o g r a p h y A d v i s o r s L L C R o n T h r o u p e J o h n K i l p a t r i c k U n i v e r s i t y o f D e n v e r G r e e n fi e l d A d v i s o r s L L C C h a r l e s Tu D a n K o h l h e p p U n i v e r s i t y o f S a n D i e g o J o h n s H o p k i n s U n i v e r s i t y B i n g Wa n g N i l s K o k H a r v a r d U n i v e r s i t y M a a s t r i c h t U n i v e r s i t y S a r a W i l k i n s o n S t e v e L a p o s a R o y a l I n s t i t u t i o n o f C h a r t e r e d A l v a r e z & M a r s a l R e a l E s t a t e S u r v e y o r s A d v i s o r y S e r v i c e s , L L C E l a i n e Wo r z a l a R i c h a r d L o o p e C o l l e g e o f C h a r l e s t o n A r i z o n a S t a t e U n i v e r s i t y C o n t e n t s 1 Part 1 3 Chemical Hazardous Sites and Residential Prices: Determinants of Impact Perry Wisinger 23 Value Capitalization Effect of Protected Properties: A Comparison of Conservation Easement with Mixed-Bag Open Spaces Jay Mittal 47 Power Lines and Perceived Home Prices: Isolating Elements of Easement Rights and Noise Pollution Michael J. Seiler 63 ‘‘Not in My Backyard’’: The Effect of Substance Abuse Treatment Centers on Property Values Claire R. La Roche, Bennie D. Waller, and Scott A. Wentland 93 The Effect of a Large Hog Barn Operation on Residential Sales Prices in Marshall County, KY Robert A. Simons, Youngme Seo, and Spenser Robinson 113 Part 2 115 A Study of LEED vs. Non-LEED Office Buildings Spatial & Mass Transit Proximity in Downtown Chicago Sofia Dermisi 143 Monte Carlo Cash Flows and Sustainability: How to Decide on Going Green Michael Stein, Wolfgang Braun, Marta Salvador Villa `, and Volker Binding 163 The Effect of Sustainability on Retail Values, Rents, and Investment Performance: European Evidence Hans Op ‘t Veld and Martijn Vlasveld 187 Walk Score: The Significance of 8 and 80 for Mortgage Default Risk in Multifamily Properties Gary Pivo 211 Green Office Buildings: A Qualitative Exploration of Green Office Building Attributes Robert A. Simons, Spenser Robinson, and Eunkyu Lee J O S R E V o l . 6 N o . 1 – 2 0 1 4 u u T h e B o a r d o f D i r e c t o r s o f t h e A m e r i c a n R e a l E s t a t e S o c i e t y e x t e n d s i t s d e e p a p p r e c i a t i o n t o : U n i v e r s i t y o f S a n D i e g o , B u r n h a m - M o o r e s R e a l E s t a t e C e n t e r f o r i t s s u p p o r t o f t h e e d i t o r i a l f u n c t i o n s o f t h e A m e r i c a n R e a l E s t a t e S o c i e t y ; F l o r i d a G u l f C o a s t U n i v e r s i t y, f o r i t s s u p p o r t o f t h e e d i t o r i a l f u n c t i o n s o f t h e A m e r i c a n R e a l E s t a t e S o c i e t y ; F l o r i d a I n t e r n a t i o n a l U n i v e r s i t y, f o r i t s s u p p o r t o f t h e D i r e c t o r o f P u b l i c a t i o n s f u n c t i o n s o f t h e A m e r i c a n R e a l E s t a t e S o c i e t y ; a n d K e n n e d y W i l s o n , f o r i t s s u p p o r t o f t h e E x e c u t i v e D i r e c t o r f u n c t i o n s o f t h e A m e r i c a n R e a l E s t a t e S o c i e t y. 2 0 1 5 M e m b e r s h i p A c a d e m i c ( $ 1 7 5 p r i n t , $ 1 3 5 e l e c t r o n i c ) , P r o f e s s i o n a l ( $ 3 5 0 p r i n t , $ 3 0 0 e l e c t r o n i c ) , A c a d e m i c L i b r a r y ( $ 6 7 5 p r i n t , $ 6 0 0 e l e c t r o n i c ) , C o r p o r a t e L i b r a r y ( $ 6 7 5 p r i n t , $ 6 0 0 e l e c t r o n i c ) , S t u d e n t o r R e t i r e d A c a d e m i c ( $ 1 0 5 p r i n t , $ 8 5 e l e c t r o n i c ) , C o r p o r a t e ( $ 6 7 5 p r i n t , $ 6 0 0 e l e c t r o n i c ) , S p o n s o r ( $ 1 , 5 0 0 ) , R e g e n t ( $ 3 , 0 0 0 ) a n d P r e s i d e n t ’s C o u n c i l ( $ 6 , 0 0 0 ) . A d d i t i o n a l m e m b e r s h i p o p t i o n s a r e a v a i l a b l e . S e e t h e 2 0 1 5 M e m b e r s h i p F o r m i n t h e b a c k o f t h e j o u r n a l . C h e c k s s h o u l d b e m a d e p a y a b l e t o A R E S a n d c o r r e s p o n d e n c e s h o u l d b e a d d r e s s e d t o : D i a n e Q u a r l e s , C l e m s o n U n i v e r s i t y, C o l l e g e o f B u s i n e s s & B e h a v i o r a l S c i e n c e , D e p t . o f F i n a n c e , 3 0 0 S i r r i n e H a l l , C l e m s o n , S C 2 9 6 3 4 - 1 3 2 3 . P h o n e : 8 6 4 - 6 5 6 - 1 3 7 3 ; F a x : 8 6 4 - 6 5 6 - 7 5 1 9 . We b s i t e : w w w. A R E S n e t . o r g o r e q u a r l e @ c l e m s o n . e d u . T h e J o u r n a l o f S u s t a i n a b l e R e a l E s t a t e ( 1 9 4 9 - 8 2 7 6 ) i s p u b l i s h e d a n n u a l l y b y t h e A m e r i c a n R e a l E s t a t e S o c i e t y a t C l e m s o n U n i v e r s i t y, S c h o o l o f B u s i n e s s a n d B e h a v i o r a l S c i e n c e , D e p a r t m e n t o f F i n a n c e , 3 0 0 S i r r i n e H a l l , C l e m s o n , S C 2 9 6 3 4 - 1 3 2 3 . P o s t m a s t e r , p l e a s e s e n d a d d r e s s c h a n g e s t o : D i a n e Q u a r l e s , C l e m s o n U n i v e r s i t y, S c h o o l o f B u s i n e s s a n d B e h a v i o r a l S c i e n c e , D e p a r t m e n t o f F i n a n c e , 3 0 0 S i r r i n e H a l l , C l e m s o n , S C 2 9 6 3 4 - 1 3 2 3 . C h a n g e s o f a d d r e s s , c l a i m s a n d a l l c o r r e s p o n d e n c e d e a l i n g w i t h s u b s c r i p t i o n s s h o u l d b e s e n t t o D i a n e Q u a r l e s , M a n a g e r o f M e m b e r S e r v i c e s , C l e m s o n U n i v e r s i t y, S c h o o l o f B u s i n e s s a n d B e h a v i o r a l S c i e n c e , D e p a r t m e n t o f F i n a n c e , 3 0 0 S i r r i n e H a l l , C l e m s o n , S C , 2 9 6 3 4 - 1 3 2 3 . P h o n e 8 6 4 - 6 5 6 - 1 3 7 3 , F a x 8 6 4 - 6 5 6 - 7 5 1 9 o r e m a i l e q u a r l e @ c l e m s o n . e d u . F o r m o r e i n f o r m a t i o n , v i s i t o u r w e b s i t e : w w w. A R E S n e t . o r g . 2 0 1 4 A m e r i c a n R e a l E s t a t e S o c i e t y P r e s i d e n t ’ s C o u n c i l A l t u s G r o u p / A R G U S S o f t w a r e P r u d e n t i a l R e a l E s t a t e I nv e s t o r s A p p r a i s a l I n s t i t u t e R E A LT O R U n i v e r s i t y / N a t i o n a l A s s o c i a t i o n o f R e a l t o r s ( N A R ) C C I M I n s t i t u t e R o y a l I n s t i t u t i o n o f C h a r t e r e d C o l v i n I n s t i t u t e o f R e a l E s t a t e S u r v e y o r s ( R I C S ) D e v e l o p m e n t T h e A p p r a i s a l F o u n d a t i o n C o r n e r s t o n e R e a l E s t a t e A d v i s e r s , I n c . T h e A p p r a i s e r s R e s e a r c h F o u n d a t i o n ( TA R F ) C o S t a r G r o u p I n s t i t u t i o n a l R e a l E s t a t e , I n c . R e g e n t s B l a c k r o c k F i n a n c i a l M a n a g e m e n t N a t i o n a l A s s o c i a t i o n o f R e a l E s t a t e I n v e s t m e n t T r u s t s ( N A R E I T ) C a r t e r R e a l E s t a t e C e n t e r , C o l l e g e o f C h a r l e s t o n N a t i o n a l I nv e s t m e n t C e n t e r f o r S e n i o r s H o u s i n g & C a r e I n d u s t r y C B R E E c o n o m e t r i c A d v i s o r s ( N I C ) C o u n s e l o r s o f R e a l E s t a t e ( C R E ) R e a l C a p i t a l A n a l y t i c s ( R C A ) I n s t i t u t e o f R e a l E s t a t e M a n a g e m e n t S a r a s o t a C a p i t a l S t r a t e g i e s ( S C S ) ( I R E M ) U B S L a S a l l e I nv e s t m e n t M a n a g e m e n t S p o n s o r s B a i l a r d , I n c . K e n n e d y W i l s o n B u i l d i n g O w n e r s & M a n a g e r s L e h i g h U n i v e r s i t y A s s o c i a t i o n ( B O M A ) I n t e r n a t i o n a l M o r t g a g e B a n k e r s A s s o c i a t i o n B u r n h a m - M o o r e s C e n t e r f o r R e a l ( M B A ) E s t a t e – U n i v e r s i t y o f S a n D i e g o N A I O P D a n i e l M . D i L e l l a C e n t e r f o r R e a l N a t i o n a l M u l t i f a m i l y H o u s i n g E s t a t e – Vi l l a n o v a U n i v e r s i t y C o u n c i l ( N M H C ) D e a r b o r n R e a l E s t a t e E d u c a t i o n N Y U S c h a c k I n s t i t u t e o f R e a l E s t a t e D r. P. P h i l l i p s S c h o o l o f R e a l O n C o u r s e L e a r n i n g E s t a t e – U n i v e r s i t y o f C e n t r a l F l o r i d a R e a l E s t a t e C e n t e r a t D e P a u l E m e r a l d G r o u p P u b l i s h i n g L t d . U n i v e r s i t y G I C R e a l E s t a t e P t e . R o u t l e d g e I n t e r n a t i o n a l C o u n c i l o f S h o p p i n g U S A A R e a l E s t a t e C o m p a n y C e n t e r s ( I C S C ) Vi r g i n i a C o m m o n w e a l t h U n i v e r s i t y J e r o m e B a i n R e a l E s t a t e I n s t i t u t e a t F l o r i d a I n t e r n a t i o n a l U n i v e r s i t y J o h n s H o p k i n s - C a r e y B u s i n e s s S c h o o l – E d w a r d S t . J o h n R e a l E s t a t e P r o g r a m J a m e s R . We b b A R E S F o u n d a t i o n E n d o w e d I n t e r n a t i o n a l S c h o l a r S p o n s o r s h i p A r t h u r L . & H e l e n B e c k e t t S c h w a r t z E n d o w e d D o c t o r a l S p o n s o r s h i p s Yo u g u o , L u c y, M i c h e l l e , a n d M i a L i a n g G l e n n R . a n d J a n H . M u e l l e r T h e r o n R . a n d S u s a n L . N e l s o n M i c h a e l J . a n d V i c k y L . S e i l e r M a r c A . L o u a r g a n d E n d o w e d M a n u s c r i p t P r i z e W i l l i a m G . H a r d i n , I I I S t e p h e n P y h r r R o n a l d J o h n s e y M i c h a e l J . a n d V i c k y L . S e i l e r C h r i s t o p h e r A . M a n n i n g R a y m o n d To r t o N o r m a n M i l l e r J o h n W i l l i a m s J o s e p h P a g l i a r i R o b e r t W h i t e / C o u n s e l o r s o f R e a l E s t a t e B e n e f a c t o r s C h r i s t o p h e r A . M a n n i n g A n t h o n y We l c h L o y o l a M a r y m o u n t U n i v e r s i t y S a r a s o t a C a p i t a l S t r a t e g i e s S t e p h e n A . P y h r r K e n n e d y W i l s o n D i s t i n g u i s h e d F e l l o w s J o s e p h D . A l b e r t A l e x K l a t s k i n J a m e s M a d i s o n U n i v e r s i t y – E m e r i t u s F o r s g a t e I n d u s t r i a l P a r t n e r s M a r k L . L e v i n e J o h n D . B e n j a m i n U n i v e r s i t y o f D e n v e r , T h e A p p r a i s a l A m e r i c a n U n i v e r s i t y – E m e r i t u s F o u n d a t i o n D o n D o r e c h e s t e r K a r l - We r n e r S c h u l t e R I C S A m e r i c a s U n i v e r s i t y o f R e g e n s b u r g D a n F r e n c h R o b e r t A . S i m o n s U n i v e r s i t y o f M i s s o u r i C l e v e l a n d S t a t e U n i v e r s i t y P a u l R . G o e b e l G . S t a c y S i r m a n s Te x a s Te c h U n i v e r s i t y F l o r i d a S t a t e U n i v e r s i t y K a r l L . G u n t e r m a n n M i c h a e l C . T r u e b e s t e i n A r i z o n a S t a t e U n i v e r s i t y – E m e r i t u s U n i v e r s i t y o f L u c e r n e D a v i d H a r r i s o n R i c h a r d W i n c o t t Te x a s Te c h U n i v e r s i t y A l t u s G r o u p / A R G U S S o f t w a r e F e l l o w s J o h n S . B a e n J a m e s R . D e L i s l e U n i v e r s i t y o f N o r t h Te x a s U n i v e r s i t y o f M i s s o u r i E d w a r d A . B a r y l a J a n A . d e R o o s E a s t Te n n e s s e e S t a t e U n i v e r s i t y C o r n e l l U n i v e r s i t y P i n g C h e n g G e o f f r e y D o r m a n F l o r i d a A t l a n t i c U n i v e r s i t y I n s i t u t i o n a l R e a l E s t a t e I n c . M a r v i n F. C h r i s t e n s e n D o n a l d R . E p l e y R R E E F U n i v e r s i t y o f S o u t h A l a b a m a 2 0 1 4 F e l l o w s ( c o n t i n u e d ) M i c h a e l D . E r i k s e n J o s e p h L . P a g l i a r i , J r . Te x a s Te c h U n i v e r s i t y U n i v e r s i t y o f C h i c a g o R u d y R . R o b i n s o n , I I I K a r e n M . G i b l e r A u s t i n Va l u a t i o n C o n s u l t a n t s G e o r g i a S t a t e U n i v e r s i t y M a u r i c i o R o d r i g u e z T h o m a s G i b s o n Te x a s C h r i s t i a n U n i v e r s i t y H o l l a d a y P r o p e r t i e s S t e p h e n E . R o u l a c K i m b e r l y G o o d w i n R o u l a c G l o b a l L L C U n i v e r s i t y o f S o u t h e r n M i s s i s s i p p i R o n a l d C . R u t h e r f o r d O t i s E . H a c k e t t U n i v e r s i t y o f S o u t h F l o r i d a O t i s E . H a c k e t t & A s s o c i a t e s S e a n P. S a l t e r T h o m a s W. H a m i l t o n M i d d l e Te n n e s s e e S t a t e U n i v e r s i t y U n i v e r s i t y o f S t . T h o m a s – M i n n e s o t a D a v i d S c r i b n e r , J r . M i c h a e l J . H i g h fi e l d B a r u c h C o l l e g e , C U N Y M i s s i s s i p p i S t a t e U n i v e r s i t y T h o m a s M . S p r i n g e r F o r r e s t E . H u f f m a n C l e m s o n U n i v e r s i t y Te m p l e U n i v e r s i t y M a r k A . S u n d e r m a n L . J i d e I w a r e r e U n i v e r s i t y o f M e m p h i s H o w a r d U n i v e r s i t y G r a n t I . T h r a l l T h o m a s O . J a c k s o n B u s i n e s s G e o g r a p h y A d v i s o r s Te x a s A & M U n i v e r s i t y K o Wa n g K e n H . J o h n s o n J o h n s H o p k i n s U n i v e r s i t y F l o r i d a A t l a n t i c U n i v e r s i t y H . S h e l t o n We e k s G . D o n a l d J u d F l o r i d a G u l f C o a s t U n i v e r s i t y U n i v e r s i t y o f N o r t h C a r o l i n a – G r e e n s b o r o M a r g o t B . We i n s t e i n J o h n K i l p a t r i c k M W L e a d e r s h i p C o n s u l t a n t s G r e e n fi e l d A d v i s o r s , L L C J o h n E . W i l l i a m s S t e v e n P. L a p o s a M o r e h o u s e C o l l e g e – E m e r i t u s A l v a r e z & M a r s a l R e a l E s t a t e A d v i s o r y D a n i e l T. W i n k l e r S e r v i c e s , L L C U n i v e r s i t y o f N o r t h C a r o l i n a – G r e e n s b o r o J o s e p h B . L i p s c o m b K i m b e r l y W i n s o n - G e i d e m a n Te x a s C h r i s t i a n U n i v e r s i t y U n i v e r s i t y o f M e l b o u r n e E m i l M a l i z i a E l a i n e M . Wo r z a l a U n i v e r s i t y o f N o r t h C a r o l i n a – C h a p e l H i l l C o l l e g e o f C h a r l e s t o n W i l l a r d M c I n t o s h Z h o n g h u a W u U S A A R e a l E s t a t e C o m p a n y F l o r i d a I n t e r n a t i o n a l U n i v e r s i t y N o r m a n G . M i l l e r J a m e s Yo u n g U n i v e r s i t y o f S a n D i e g o U n i v e r s i t y o f A u c k l a n d G r a e m e N e w e l l L e o n a r d Z u m p a n o U n i v e r s i t y o f We s t e r n S y d n e y U n i v e r s i t y o f A l a b a m a J O S R E A d v i s o r y B o a r d S c o t t A n d e r s C h a r l e s B . L e i t n e r I I I U n i v e r s i t y o f S a n D i e g o G r e e n p r i n t F o u n d a t i o n G r a n t W. A u s t i n D a v i d P. L o r e n z A m e r i c a n Va l u a t i o n , I n c . L o r e n z P r o p e r t y A d v i s o r s A a r o n B i n k l e y L . H u n t e r L o v i n s A M B P r o p e r t y N a t u r a l C a p i t a l i s m S o l u t i o n s S t u a r t B r o d s k y A s i e h M a n s o u r N e w Yo r k U n i v e r s i t y T h e To w n s e n d G r o u p , L L C J a c k C r e w s S c o t t M u l d a v i n J o n e s L a n g L a S a l l e T h e M u l d a v i n C o m p a n y, I n c . D a l e R . D e k k e r D a v i d L . P o g u e D e k k e r / P e r i c h / S a b a t i n i C B R E B r i a n D u n b a r J a y S p i v e y C o l o r a d o S t a t e U n i v e r s i t y C o S t a r G r o u p R i c h a r d E p s t e i n L e a n n e To b i a s R N L D e s i g n M a l a c h i t e L L C A n d r e w C . F l o r a n c e C a t h y Tu r n e r C o S t a r G r o u p N e w B u i l d i n g s I n s t i t u t e D o u g G a t l i n Va n c e Vo s s U . S . G r e e n B u i l d i n g C o u n c i l P r i n c i p a l R e a l E s t a t e I nv e s t o r s D a n i e l e H o r t o n A l a n W h i t s o n Ve r d a n i P a r t n e r s R PA Ly d i a J a c o b s - H o r t o n S a l l y R . W i l s o n P r o c t e r & G a m b l e C B R E K e n t J e f f r e y s J i m Yo u n g I n t e r n a t i o n a l C o u n c i l o f S h o p p i n g R e a l c o m m C e n t e r s J e r r y Yu d e l s o n D a v i d M . J e l l i s o n G r e e n B u i l d i n g a n d S u s t a i n a b i l i t y L i b e r t y P r o p e r t y T r u s t C o n s u l t a n t S t e p h e n L . K a p p S i e m e n s I n d u s t r y, I n c . P r e f a c e We are pleased to present the sixth volume of the Journal of Sustainable Real Estate (JOSRE). This issue is a combined effort with the Land Economics Foundation (LEF), with guest editors Frank A. Clayton and Daniel Winkler. Part 1 is focused on the impact of environmental influences on property value and Part 2 includes broader and more traditional topics for JOSRE. This issue and many other resources are available at www.josre.org The LEF is a not-for-profit trust registered in the United States established by Lambda Alpha International (LAI) to provide financial assistance to research projects related to land economics. LAI is an international honorary society for the advancement of land economics established at Northwestern University in 1930. While LEF has been funding research endeavors in land economics for a number of years, this special issue marks the first time LEF has proactively sponsored research on the important topic of the environmental impact of real estate. The idea to co-sponsor this research effort with the American Real Estate Society originated with Mike Anikeeff at the Carey Business School at Johns Hopkins University, who was a member of both LAI and ARES and a member of LEF’s Research Committee at the time. I want to thank Daniel Winkler and Frank A. Clayton, the guest editors, and Myla Wilson, managing editor, for all of their help and insights in bringing this special issue to fruition. Norman G. Miller Nico B. Rottke Senior Editor European Editor University of San Diego European Business School Frank A. Clayton Robert Simons Guest Editor North American Associate Editor Centre for Urban Policy and Land Cleveland State University Development / Ryerson University Myla Lorenzo-Wilson Daniel T. Winkler Managing Editor Guest Editor University of San Diego University of North Carolina– Greensboro Kwame Addae-Dapaah Asia-Pacific Editor This page intentionally left blank
Journal
Journal of Sustainable Real Estate
– Taylor & Francis
Published: Jan 1, 2014
