DETERMINANTS OF INDUSTRIAL-PROPERTY VALUE

This paper examines the determinants of industrial property value. We use the factor-analytic linear structural relations (LISREL) model to confront measurement problems associated with related work. A simultan eous test of the effects on property value of factors summarizing phys ical property national market, local market, interest rate and locatio n variables is performed. Findings indicate that the value of industri al buildings during 1987-1991 in the Dallas/Fort Worth area is primari ly related to local market effects and to physical characteristics and location of the property.