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David C. Ling - Real Estate Principles: A Value Approach

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David C. Ling Real Estate Principles: A Value Approach
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Real Estate Principles: A Value Approach: summary, description and annotation

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Real Estate Principles: A Value Approach demonstrates how value is central to virtually all real estate decision-making. Students using Ling and Archer should finish the course with a value-oriented framework and a set of valuation and decision making tools that can be applied in a variety of real-world situations. The key to making sound investment decision is to understand how property values are created, maintained, increased or destroyed.

Since the launch of Real Estate Principles: A Value Approach, significant and lasting changes have come upon the world of real estate. This is very true in real estate finance and capital sources where most of the traditional lenders have been transformed or displaced, giving way to a radically different set of players in mortgage finance. There has been change with profound and far-reaching implications in a world where it is understandable that property values can go down as well as up. This realization will color every aspect of real estate investment, finance and transactions for the foreseeable future.

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page i Real Estate Principles A Value Approach Sixth Edition page ii The - photo 1

page i

Real Estate Principles

A Value Approach

Sixth Edition

page ii

The McGraw-Hill Series in Finance, Insurance, and Real Estate

FINANCIAL MANAGEMENT

Block, Hirt, and Danielsen

Foundations of Financial Management

Seventeenth Edition

Brealey, Myers, and Allen

Principles of Corporate Finance

Thirteenth Edition

Brealey, Myers, and Allen

Principles of Corporate Finance, Concise

Second Edition

Brealey, Myers, and Marcus

Fundamentals of Corporate Finance

Tenth Edition

Brooks

FinGame Online 5.0

Bruner

Case Studies in Finance: Managing for Corporate Value Creation

Eighth Edition

Cornett, Adair, and Nofsinger

Finance: Applications and Theory

Fifth Edition

Cornett, Adair, and Nofsinger

M: Finance

Fourth Edition

DeMello

Cases in Finance

Third Edition

Grinblatt (editor)

Stephen A. Ross, Mentor: Influence through Generations

Grinblatt and Titman

Financial Markets and Corporate Strategy

Second Edition

Higgins

Analysis for Financial Management

Twelfth Edition

Ross, Westerfield, Jaffe, and Jordan

Corporate Finance

Twelfth Edition

Ross, Westerfield, Jaffe, and Jordan

Corporate Finance: Core Principles and Applications

Sixth Edition

Ross, Westerfield, and Jordan

Essentials of Corporate Finance

Tenth Edition

Ross, Westerfield, and Jordan

Fundamentals of Corporate Finance

Twelfth Edition

Shefrin

Behavioral Corporate Finance: Decisions that Create Value

Second Edition

INVESTMENTS

Bodie, Kane, and Marcus

Essentials of Investments

Eleventh Edition

Bodie, Kane, and Marcus

Investments

Twelfth Edition

Hirt and Block

Fundamentals of Investment Management

Tenth Edition

Jordan, Miller, and Dolvin

Fundamentals of Investments: Valuation and Management

Ninth Edition

Stewart, Piros, and Heisler

Running Money: Professional Portfolio Management

First Edition

Sundaram and Das

Derivatives: Principles and Practice

Second Edition

FINANCIAL INSTITUTIONS AND MARKETS

Rose and Hudgins

Bank Management and Financial Services

Ninth Edition

Rose and Marquis

Financial Institutions and Markets

Eleventh Edition

Saunders and Cornett

Financial Institutions Management: A Risk Management Approach

Tenth Edition

Saunders and Cornett

Financial Markets and Institutions

Seventh Edition

INTERNATIONAL FINANCE

Eun and Resnick

International Financial Management

Eighth Edition

REAL ESTATE

Brueggeman and Fisher

Real Estate Finance and Investments

Sixteenth Edition

Ling and Archer

Real Estate Principles: A Value Approach

Sixth Edition

FINANCIAL PLANNING AND INSURANCE

Allen, Melone, Rosenbloom, and Mahoney

Retirement Plans: 401(k)s, IRAs, and Other Deferred Compensation Approaches

Twelfth Edition

Altfest

Personal Financial Planning

Second Edition

Harrington and Niehaus

Risk Management and Insurance

Second Edition

Kapoor, Dlabay, Hughes, and Hart

Focus on Personal Finance: An Active Approach to Help You Achieve Financial Literacy

Sixth Edition

Kapoor, Dlabay, Hughes, and Hart

Personal Finance

Thirteenth Edition

Walker and Walker

Personal Finance: Building Your Future

Second Edition

page iii

Real Estate Principles

A Value Approach

Sixth Edition

David C. Ling

University of Florida

Wayne R. Archer

University of Florida

Real Estate Principles A Value Approach - image 2

page iv

Real Estate Principles A Value Approach - image 3

REAL ESTATE PRINCIPLES

Published by McGraw Hill LLC, 1325 Avenue of the Americas, New York, NY 10121. Copyright 2021 by McGraw Hill LLC. All rights reserved. Printed in the United States of America. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of McGraw Hill LLC, including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning.

Some ancillaries, including electronic and print components, may not be available to customers outside the United States.

This book is printed on acid-free paper.

1 2 3 4 5 6 7 8 9 LWI 25 24 23 22 21 20

ISBN 978-1-260-57049-6

MHID 1-260-57049-5

Cover Image: The Jon B. Lovelace Collection of California Photographs in Carol M. Highsmiths America Project, LOC, Prints & Photo Division

All credits appearing on page or at the end of the book are considered to be an extension of the copyright page.

The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a website does not indicate an endorsement by the authors or McGraw Hill LLC, and McGraw Hill LLC does not guarantee the accuracy of the information presented at these sites.

mheducation.com/highered

page v

Dedications

To my wife, Lucy, for her continued patience and understanding during this latest revision of the book and to our (now grown) children, Alex, Sarah, and Rebecca, who continue to try to understand what Dad actually does for a living.

DCL

To my wife, Penny, who has always matched our efforts in this book with an equal measure of her devotion, support, and assistance; to our children Stephen, John, and Jennifer, who generously supported me with enthusiasm for the task; and to my mother and Pennys mother, who always kept the faith that I would do something useful with my typewriter.

WRA

page vi

About the Authors

DAVID C. LING

David C. Ling is the McGurn Professor of Real Estate at the University of Florida. Professor Ling received an MBA (1977) in finance and a Ph.D. (1984) in real estate and economics from The Ohio State University. His academic and professional publications have included articles on housing policy and economics, mortgage markets and pricing, private commercial real estate investments, publicly traded real estate companies, and performance evaluation. Professor Lings research has been published in general interest finance journals (Journal of Financial Economics), leading field journals in finance and economics (e.g., Journal of Urban Economics, Journal of Money, Credit and Banking, Journal of Banking and Finance, National Tax Journal), as well as the leading real estate focused journals (Real Estate Economics, Journal of Real Estate Finance and Economics, Journal of Real Estate Research).

During 2000, Professor Ling served as President of the American Real Estate and Urban Economics Association (AREUEA). From 2000 to 2005, he also served as editor of Real Estate Economics. Professor Ling serves on numerous journal editorial boards including Real Estate Economics, the Journal of Real Estate Finance and Economics, the Journal of European Real Estate Research, and

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