Non-residential Properties Research Articles

Assessing the severity of non-performing loans for residential and non-residential properties in Malaysia

This study attempts to assess the macroeconomic factors impacting non-performing loans (NPLs) in both residential and non-residential properties held by commercial and Islamic banks in Malaysia between 2007 and 2021. The study will analyze quarterly NPL (non-performing loan) ratio data from reputable sources like Bank Negara, International Financial Statistics, and the Bank for International Settlements. It will focus on NPL trends across different property types in commercial and Islamic banks. Using the Autoregressive Distributed Lag (ARDL) technique, the study will evaluate the long-term relationship between NPLs and key macroeconomic factors. The results show a proven cointegrating link between determinants and NPLs. This provides crucial insights into fostering economic growth through macroeconomic factors while also bolstering the overall sustainability of the financial systems. The models are designed to anticipate non-performing loans based on data from Q12007- Q22021. Thus, the conclusions have practical limits, such as distortions in reflecting actual conditions or trends. Since then, the economy, society, and technology have all changed dramatically. Furthermore, human behaviors and preferences might change, making previous patterns less dependable for forecasting future actions. Key regulatory authorities, such as Bank Negara Malaysia, have developed measures to detect and address imbalances and vulnerabilities in the financial industry. Many of these measures have long lags; thus, it is important to identify macroeconomic and macro-financial factors that could act as leading indicators for future non-performing loan developments. The paper primarily contributes by estimating models to predict variables related to non-performing loans (NPLs). Its findings are valuable to regulatory agencies, as these agencies often rely on delayed indicators to identify key drivers of NPLs, including macroeconomic and bank-specific factors.

The Black Box of Single-Family Zoning Reform

America faces a staggering housing affordability crisis. The consequences of the crisis include reduced economic productivity, suppressed labor mobility, greater social inequity, and increased homelessness. A scholarly consensus blames excessive land-use regulation for these problems and advocates now call for deregulation. Several jurisdictions have recently elected to allow middle housing—small, multi-family developments—in areas previously zoned for single-family detached housing. The results of these reforms, however, have been disappointing. This Article examines why they have fallen short and how to do better. This Article identifies an analytical disconnect between the deregulatory consensus and actual single-family zoning reforms adopted to date. Given this disconnect and the limited success of single-family zoning reforms thus far, it is unclear why such reforms continue to be adopted. Moreover, these reforms cannot achieve their promised ends. Interviews of middle housing builders in reform jurisdictions reveal legal and structural barriers that prevent market participants from responding to the housing crisis with scale and urgency. This Article proposes several regulatory alternatives that offer a greater probability of success in achieving the consensus’s goals: (1) modestly expanding multi-family zones to allow redevelopment and densification of underutilized non-residential properties; (2) providing affordable-housing density bonuses; (3) streamlining land-use procedures and eliminating administrative delay to reduce uncertainty in permitting processes; and (4) reevaluating financing mechanisms for new housing development. Taken together, these policies are necessary complements to single-family zoning reforms for addressing undersupply of market- and below-market-rate housing.

Household and household-related waste generation and characteristics in rural areas: A case study in Tanjungsari Sub-district

Waste management issues in rural locations differ from those in metropolitan ones. Unmanaged waste has the potential to harm the rural environment. Understanding the generation and characteristics of household and household-related waste is the starting point for planning waste management. Accurate measurement of waste generation and characteristics helps optimize waste reduction and recycling efforts. Therefore, this study aims to measure the waste generation and characteristics in rural areas using the Indonesia National Standard 19-3964-1994 method. The survey team visited 60 samples of residential and non-residential properties in the Tanjungsari Sub-district for eight consecutive days. Based on the results, the waste generation was 0.34 kg person-1 day-1. Organic waste (food waste, leaves, paper, and wood) accounts for the majority of garbage (81,34%), followed by inorganic materials (plastic, fabric, other materials, metal, and glass) at 15.66%, 1.86%, 0.91%, 0.12%, 0.11% respectively. The residential waste density is 196.1 kg m-3, while in non-residential areas is 63.63 kg m-3. Family size and income, living habits, and the type of economy or industry that develops have influenced the rural waste generation and composition. Rural waste management strategies need to consider organic waste as a raw material in composting or fermentation.

Blasting Quarry Operations: Land Use Compatibility Issues and Potential Property Value Impacts

Aggregate resources are essential for road and building construction. In 2019, the US domestic production reached 1.53 billion tons of crushed stone valued at $18.7 billion produced by an estimated 1,430 companies operating 3,440 quarries, according to the U.S. Geological Survey (USGS) Mineral Commodity Summaries. But, it is also recognized that a quarry blasting below the water table is one of the most noxious, toxic and destructive uses of land, with no reasonable prospect of post-extraction-rehabilitation. If permitted and established in the wrong geographic location, a blasting quarry operation can result in significant deleterious impacts on the environment and local inhabitants and can disrupt short and long-term land use planning objectives. Because a quarry can remain operational for 100+ years, impacting five or more generations; quarries have the potential to cause permanent environmental degradation, destabilize communities, damage, sterilize or diminish the use and enjoyment of residential and non-residential properties, and reduce property values. Blasting is the preferred method of extracting rock in a quarry operation, the consequences of which can lead to environmental and property damage, and to injury or death of human and non-human life. In North America, licensing and operational oversight of a pit or quarry are primarily controlled by the individual states, territories and provinces, and address matters of compliance, while issues related to land use planning and zoning are entirely within the jurisdiction of the local municipalities, counties or regions. Accordingly, this research paper seeks to inform land use planners of the importance of protecting the environment and its inhabitants from the adverse effects, including the diminution in property values, associated with aggregate extraction operations generally and blasting quarries specifically, through the use of permanent onsite setbacks and offsite separation distances to avoid land use incompatibility and sensitive land uses.

The Impact of Hiawatha Light Rail on Commercial and Industrial Property Values in Minneapolis

The impact of proximity to transit on property values has become a key question in the debate on the relationships between public infrastructure investment and economic development. The focus has been on value captured by residential properties, with far fewer studies examining non-residential properties. Furthermore, few studies differentiate the effect of rail access and the effect of access to major interactions that later become station sites, and even fewer addressed the gradient of the accessibility effect. Based on the economic theory of firm location choice, this study develops hedonic pricing models to assess the value-added of the Hiawatha LRT on commercial and industrial properties, using data on properties sold before and after its completion. The results show that the LRT has induced a significant price premium for properties nearby and that the impact extends to almost 0.9 miles away from LRT stations.

The Impact of COVID-19 on Urban Water Consumption in the United States

The COVID-19 pandemic has changed how we define “home”, which is recast as the new coffee shop, restaurant, entertainment center, and office during the pandemic. The shift toward working from home led to substantial changes in how consumers behave, affecting the consumption of resources in some cases for years to come. Using data from six water utilities in various states in the U.S., we investigated how water consumption has changed attributable to the implementation of stay-at-home (SAH) orders. The results indicated an overall increase of between 3.08% and 13.65% in daily water consumption during the SAH orders compared to the same period in 2018 and 2019, with the gaps closing as lockdown restrictions eased. The findings also revealed that the changes in water consumption across sectors and user groups were heterogeneous. Specifically, the results showed that total daily residential water demand during SAH orders in 2020 increased significantly, between 11.80% and 13.65%, relative to the same period in 2018 and 2019, but the changes in water consumption for non-residential properties headed in opposite directions with reductions between −22.53% and −45.08%. In addition, we found that the low-income groups did not change their water consumption even with the lockdown.

The determinants of non-residential real estate values with special reference to environmental local amenities

This paper presents the results of an empirical study of the determinants of non-residential real estate values in Los Angeles County. The data base consists of 13, 370 property transactions from 1996 to 2005. Separate spatial econometric models are developed for industrial, commercial, retail and office properties. The study focuses on the impact on property values of environmental local amenities.Our analytical results provide insights on how local amenities may affect non-residential properties values and how the impact may differ across property types. Our empirical results offer evidence that explicitly modeling spatial dependence is necessary for hedonic non-residential property models where there is interest in local amenities. We also show that it is important to account for the temporal dimension since ignoring it can lead to misinterpretation of the real measure of spatial dependence over time.We find that open space, typically an amenity considered to be jointly valuable to firms and households, has either weak or non-robust effects on non-residential property values. On the other hand, the joint amenities coastal access, air pollution, weather and crime appear to have stable spatial correlations with property values across specifications. In contrast, those amenities that are likely only valued by firms, such as transportation access and proximity to concentrations of skilled workers, have robust and significant correlations with non-residential values.

Responding to climate change around England's coast - The scale of the transformational challenge

Around the world coastal communities face an unprecedented challenge in responding to sea level rise and associated changes. For many responding through incremental adaptation may be appropriate (although not without limits). This may include progressively raising defences, nourishing beaches, and other conventional management measures. Such actions are well supported by existing governance structures and investment vehicles. For others however, continuing to provide protection from flooding may not be technically feasible or financially viable. For these communities, transformational adaptation will be needed (including realignment or relocation). Implementing transformational change, however, is difficult and requires a clarity of long-term planning and a means of supporting communities to take early action in making this transition.This paper explores the scale of the transformational challenge in England through to 2100. The combined influences of relative Sea Level Rise and the local lowering of the foreshore platform due to increased wave-driven surface erosion are considered. The realism of published shoreline policies (set out within England's Shoreline Management Plans) are assessed based on projected changes in flood risk and benefit-cost considerations. The assessment suggests 1,600–1,900 km (∼30%) of England's shoreline currently designated as a ‘Hold-the-Line’ policy is likely to see increasing pressure to realign (assuming a rise in Global Mean Surface Temperature of between 2 and 4 °C by 2100) with implications for ∼120,000–160,000 residential and non-residential properties by the 2050s. It is likely that a proportion of these properties will require relocation. It is not possible to say how many this will be. This will be a matter for government and the associated policy and funding priorities that will influence local outcomes.

Estimation of Scottish Pluvial Flooding Expected Annual Damages Using Interpolation Techniques

Flood modelling and mapping, underpinned by hydraulic modelling, are typically used to define flood hazard and allow a quantification of risk and associated Expected Annual Damages (EAD). At a regional or national scale, such modelling is often a lengthy process, which does not allow changes in risk resulting from new science such as revised rainfall frequency estimates or climate projections to be readily quantified by policy makers. A framework of interpolation and extrapolation methods has been developed in the R language via practical application to the city of Perth in central Scotland. These methods allow existing flood mapping, design rainfall estimates and property receptor datasets combined with revised design rainfall estimates to be used to rapidly assess the consequences of change in risk and EAD. The results are evaluated against detailed hydraulic modelling and are shown to provide a good approximation of changes in flood depth and EAD for properties previously modelled as at risk of flooding, particularly residential properties, with lower confidence for non-residential properties. In the Scottish context, the methods are considered to be robust for regional and national scale application and would allow policy makers with a means to rapidly determine the consequence of changes in design rainfall estimates without the immediate requirement to undertake complex hydraulic modelling.

Dispersal of a non-native land snail across a residential area is modified by yard management and movement barriers

Urban areas with residential yards (= domestic gardens) provide a diverse environmental mosaic characterized by high plant architectural and species diversity and variation in yard management practices among residents. For small, slow-moving taxa such as land snails, this mosaic provides an unplanned experiment to document dispersal patterns and conditions influencing this pattern. The snail Cornu aspersum is a Mediterranean-native that was likely introduced into a Norman, Oklahoma (USA) yard through the plant trade. Cornu spread across 16 residential yards (and up to 110 m) in a single block over a period of at least 6 years, moving in a diffusive dispersal pattern. Supplemental water (e.g., watered plant beds and ponds) combined with nearby shelters contributed to increased local density but may also result in targeted snail control. Although roads contributed to the species arrival, roads were barriers to short-term snail self-dispersal and the limited road crossing may have been human-mediated (e.g., snails carried on potted plants). Dispersal was limited across non-residential properties with expansive grass lawns and parking lots. Residential areas provide a good model system for examining factors associated with the spread of non-native species, especially for species having low mobility.

An Analysis on the Utility Ratio per Floor of Retail Property in Seoul

The utility ratio per floor is not only used to estimate the price or rent of a condominium unit and compensation appraisal, but also is a significant indicator in calculating the standard of assessment of the price announcement system for non-residential properties to be introduced in the future. Despite the importance of the utility ratio per floor statistics, the current utility ratio per floor statistics provide a single indicator by commercial districts and region, making it impossible to closely reflect the characteristics of the retail properties. This study analyzes the utility ratio per floor using rent data of retail properties in Seoul. Especially, this study performs the multi-level analysis including the building level and commercial district level to consider the effects of the hierarchical influencing factors on the rent. After this study analyzes the utility ratio per floor of total sample using the hierarchical linear model, it also performs sub-sample analysis to compare the utility ratio per floor patterns of sub groups divided by gross leasable area and elevator installment. As a result, the study confirms that the utility ratio per floor generally tends to decrease from the first floor to the upper floors. This study discovers sub groups have significantly different patterns of the utility ratio per floor. The buildings with elevators show the higher the utility per floor compared to those without elevators. The utility ratio per floor of buildings with large gross leasable areas is higher in the upper floors than buildings with small gross leasable areas. On the other hand, the opposite results come up in the lower floors.

Capital Requirements in Supervisory Stress Tests and Their Adverse Impact on Small Business Lending

This paper estimates the implicit capital requirements in the U.S. supervisory stress tests. Our results show that stress tests are imposing dramatically higher capital requirements on certain asset classes – most notably, small business loans and residential mortgages – than bank internal models and Basel standardized models. By imposing higher capital requirements on loans to small businesses and mortgage loans, stress tests are likely curtailing credit availability for the types of borrowers that lack alternative sources of finance. In addition, we identify the impact of supervisory stress tests on the availability of credit to small businesses by analyzing differences in small business loan growth at banks subject to stress tests versus those that are not. Our results indicate that the U.S. stress tests are constraining the availability of small business loans secured by nonfarm nonresidential properties, which accounts for approximately half of small business loans on banks’ books.

Determinants of financial performance of real estate brokerage industry in Iran

PurposeThe aim of this study is to investigate the factors influencing the financial performance of the real estate brokerage (REB) industry in Iran.Design/methodology/approachThe authors use two surveys concerning REB firms from provinces of Iran which were collected by the Statistical Centre of Iran in 2003 and 2011. The authors apply the pooled ordinary least squares and panel fixed-effects regressions to estimate the relationships between the explanatory variables and performance of REB industry.FindingsThe results indicate that in provinces where REB firms invest more in residential properties, vehicles, computers and business software, REB firms are more active in residential and non-residential property sales, and rent transactions have higher levels of financial performance. In addition, the results show that in provinces where REB firms invest more in non-residential properties and office furniture, REB industry has lower levels of financial performance. The authors also find that Iranian REB industry has significantly benefited from international economic and financial sanctions.Practical implicationsIn terms of managerial implications, the authors findings potentially serve as guidance for Iranian REB firms to allocate resources and adjust their strategy to enhance their financial performance.Originality valuePrevious studies have typically been conducted in countries where REB firms mainly operate as intermediaries in transactions between property buyers and sellers, whereas in Iran, REB firms not only provide services to their clients but also are very active speculators in the property market. Furthermore, while there have been many studies that have investigated the various determinants of performance and efficiency of REB industry in developed economies, there is scant literature around this topic for Middle Eastern countries.

The Determinants of Non-Residential Real Estate Values with Special Reference to Local Environmental Goods

This paper presents the results of an empirical study of the determinants of non-residential real estate values in Los Angeles County. The data base consists of 13, 370 property transactions from 1996 to 2005. Separate spatial econometric models are developed for industrial, commercial, retail and office properties. The study focus on the impact on property values of local amenities. Our analytical results provide insights on how amenities may affect non-residential properties values and how the impact may differ across property types. Our empirical results offer evidence that explicitly modeling spatial dependence is necessary for hedonic non-residential property models where there is interest in local amenities. We also show that it is also important to account for the temporal dimension since ignoring it can lead to misinterpretation of the real measure of spatial dependence over time. Moreover, we find that in general amenities that are jointly valuable to firms and household, such as parks or air quality have either weak or non-robust effects on nonresidential values. However, the fact that the joint amenities coastal access and crime appear to have stable correlations across specifications would be consistent with a higher firm than household valuation. In contrast, those amenities that are likely only valued by firms, such as transportation access and proximity to concentrations of skilled workers have robust and significant correlations with non-residential values. JEL codes: R52, H23

Comprehensive flood economic losses: review of the potential damage and implementation of an agricultural impact model

With an annual loss averaging 580 M€ between 1990 and 2014, floods are the main natural catastrophe (Nat Cat) risk for the French Nat Cat compensation scheme. As part of its role in this scheme, the Caisse Centrale de Reassurance (CCR) offers state guaranteed reinsurance programs and has been modelling the risk of flooding since 2003. This model is based on the traditional valuation approach of direct tangible costs which pairs a physical model with exposure through damage curves. CCR wishes now to widen the studied damage scope to insured and noninsured economic costs and has been collaborating with the SAF research laboratory from the Institute of Financial and Insurance Sciences (ISFA) since 2014. CCR’s model has been used to estimate the insured direct damage to residential and non-residential properties and it is now being developed to include damage to vehicles, agriculture and network infrastructures. Research is also being carried out to take into account business interruptions and indirect losses using an Input-Output model. This article describes the undergoing work on model development to estimate the damage to agriculture.

Scenarios of Future Built Environment for Coastal Risk Assessment of Climate Change Using a GIS-Based Multicriteria Analysis

Assessments of changing risks in the future often focus on climate change alone, and ignore other relevant drivers such as socioeconomic changes. If other relevant drivers are considered at all, expert judgment is often used to create scenarios and the underlying logic is not always apparent. In this paper we describe an algorithm-based method for developing quantitative future scenarios of the built environment in East Anglia, England with a focus on a coastal management unit, designated sub-cell 3b. The four UK Foresight socioeconomic storylines were inputs to the study: World Markets, Local Stewardship, Global Sustainability, and National Enterprise. On the basis of estimated regional demand, the distributions of new residential and nonresidential properties were calculated under all scenarios using a GIS-based multicriteria analysis. The buildings are distributed across a large swath of East Anglia using four attraction factors with different weightings to reflect the storylines. The factors are the e...

An Empirical Study of Compensation Paid in Eminent Domain Settlements: New York City, 1990–2002

Abstract No large‐scale empirical study on condemnation compensation has been done in the past 30 years. Several state legislatures, in response to Kelo v. City of New London, have changed laws to increase condemnation compensation, despite the lack of empirical grounds. To fill in the empirical gap, I use hedonic regression models and about 80,000 sales to estimate the fair market value (FMV) of 430 condemned properties whose owners reached compensation settlements with the condemnor, New York City, between 1990 and 2002. More than 50 percent of these condemnees were compensated with less than FMV, about 40 percent received more than FMV, and less than 10 percent received FMV. Owners of residential properties and nonresidential properties alike often received extreme compensations that are less than 50 percent or more than 150 percent of FMV. Extreme compensation results from bias‐prone and inaccurate appraisal methods. Using the available data, I find that compensation level does not correlate with any ...

Overview of Real Estate Markets in Kuwait

This paper provides insights on the real estate market in Kuwait. A number of market distortions and imbalances are identified and their likely implications for the economy are discussed. The dynamics of prices on land and various types of completed buildings are also discussed. It argues that the high prices typical for single-family houses and some non-residential properties are driven up by: (1) high effective demand from families for investment outlets; (2) high social value attached to living in detached houses, which is supported by the current governmental housing policy; and (3) limited access to non-residential land by the private sector. The conditions for private investment in non-residential development, including existing constraints for non-Kuwaitis and international developer/investors, are also reviewed.

Property Tax in a City-State: The Case of Singapore

This paper examines the nature and structure of property tax in Singapore, an affluent and rapidly ageing city state in Southeast Asia. While the property tax based on annual rental value has a long history and is a well accepted tax in Singapore, it is only about two decades ago that the process of modernizing the tax began. The paper highlights three characteristics of Singapore's property tax. The first concerns the activist and aggressive use of the property tax as an industrial policy and macroeconomic stabilization tool. The second is the close relationship between public housing, property tax, and mandatory savings scheme. As a result, this scheme has essentially substituted for the mortgage finance market in Singapore. Third, there exist large disparities in property tax treatment of public housing which is very lightly taxed, and the treatment of non-residential properties, which are relatively more heavily taxed. The paper suggests a need for more transparent assessment procedures, particularly in the current scenario of deflationary pressures in the property sector. The paper also suggests that the future revenue potential of Singapore's property tax is limited.

Small Business Crime: The Evaluation of a Crime Prevention Initiative

There has been a dearth of evaluation research concerned with assessing the effectiveness of crime prevention schemes that aim to reduce levels of crime committed against businesses and non-residential properties generally. This paper describes the implementation of a scheme aimed at reducing small business crime, with a particular emphasis on burglary in the county of Merseyside. Details of the results of an evaluation of the scheme are then given. The evaluation found that contact with a Crime Prevention Officer significantly reduced levels of crime against businesses. Advice offered by such experts was more effective than the isolated installation of target-hardening measures. The paper also attempts to gather evidence regarding the means by which and the situations in which particular crime prevention measures are effective at reducing levels of crime.