IDEAS home Printed from https://ideas.repec.org/a/bla/reesec/v7y1979i3p410-426.html
   My bibliography  Save this article

An Investment Analysis and Decision Making Framework for Real Estate Development

Author

Listed:
  • Charles H. Wurtzebach
  • Kee S. Kim

Abstract

Recent research analyzing real estate investment decisionmaking has concentrated upon existing income properties. Projects planned for future development have been analyzed as though they were completed and generating rental income. Such analysis has not considered the impact of development period decisions upon operating cash flow and hence project value. This paper proposes a framework for investment analysis which accurately reflects the interrelatedness of the development and operating periods of the real estate development process. A stochastic Markov process is used to develop a model which treats the development and operating periods as an integrated system. The resulting model allows project investment decisions to be made on the basis of a minimum expected profitability index distribution and/or terminal value.

Suggested Citation

  • Charles H. Wurtzebach & Kee S. Kim, 1979. "An Investment Analysis and Decision Making Framework for Real Estate Development," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 7(3), pages 410-426, September.
    • Handle: RePEc:bla:reesec:v:7:y:1979:i:3:p:410-426
    DOI: 10.1111/1540-6229.t01-17-00201
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1540-6229.t01-17-00201
    Download Restriction: no
    File URL: https://libkey.io/10.1111/1540-6229.t01-17-00201?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:reesec:v:7:y:1979:i:3:p:410-426. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/areueea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.