ESTIMATING THE EFFECT OF HIGH-RISE OFFICE BUILDINGS ON RESIDENTIAL PROPERTY-VALUES

Employs the hedonic estimation technique to estimate the effect that one high-rise office building has had on the value of nearby houses in a small residential area of North Dallas. In 1980, construction was completed on an eleven-story, 289 000 square foot office building called Lennox Center. The site for the improvement was (and still is) zoned shopping center district. The area west of the office building consists primarily of single-family detached owner-occupied properties on approximately 10 000 square foot lots. The nearest other high-rise property is over one-half mile away and is located in another municipality. This paper examines the effect of Lennox Center on the value of nearby residential properties using sales data and associated housing characteristics (including proximity to various non-residential land uses) for properties that sold in the vicinity of Lennox Center during the 1977 through 1986 period. The hedonic specification employed permits the estimation of both negative and positive externalities potentially associated with the high-rise employment center. -from Author