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| Valuation of the Effects of Asbestos on
Commercial Real Estate Author: Jeffrey D. Fisher, George H. Lentz, and K.S. Maurice Tse Start Page: 331 Abstract: This study develops a
valuation procedure and a model for estimating the impact of the presence of
asbestos-containing materials (ACMs) on real estate income property. A key aspect of the
valuation procedure is that the value of a property with asbestos, and hence the value
adjustment for the presence of asbestos, depends on the optimal strategy for dealing with
the asbestos. Value-maximizing conditions are derived from the model for determining if
and when removal should occur. Information obtained from a survey of real estate
appraisers provides data for parameterizing the model for the purpose of simulating the
effects of ACMs on the value of different categories of property. |
