Does Agglomeration Enhance Property Value?

• 成果类型: Article; Early Access
• 署名作者: Liu, Crocker H.; Zheng, Chen; Zhu, Bing
• 署名单位: Cornell University; University of Bath; Technical University of Munich
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2023.02773
• 发表日期: 2026
• 关键词: agglomeration; Knowledge spillover; Property value; localization economies

摘要

Does agglomeration within a building and/or neighborhood enhance or weaken property value? The valuation impact is unclear ex ante, given that agglomeration tradesoff enhanced productivity at the expense of a more concentrated tenant base. We find that a value premium exists only when agglomeration at both the building and neighborhood levels consists of firms in the same industry. This premium represents capitalized knowledge spillover externalities. Additionally, we show the stock market rewards real estate investment trusts that transact specialized buildings. The valuation consequences arising from agglomeration in the underlying real estate market are thus consistent with the public real estate market.