The Reaction of Capitalization Rates to Natural Disasters
||The Reaction of Capitalization Rates to Natural Disasters
||11th European Real Estate Society Conference (2-5 June 2004) Milano, Italy
||This study analyzes the effect of the Northridge Earthquake on capitalization rates in the multifamily building market in Los Angeles, California. The results indicate that the Northridge Earthquake had a negative impact and overall capitalization rates rose. This negative effect, however, was not uniform over the entire Los Angeles area. During the first year the impact was correlated with distance to the epicenter and proximity to areas with high concentrations of damage. This negative effect, however, proved to be a temporary phenomenon. By the third year after the earthquake the negative effects of the earthquake were not significant.
||Capitalization Rates; Earthquakes; Apartment Buildings
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||Methods and Techniques I
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