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page i

Real
Estate
Principle
s
A Value
Approach
Sixth Edition
page ii

The McGraw-Hill Series in Finance, Insurance,


and Real Estate

FINANCIAL MANAGEMENT
Block, Hirt, and Danielsen
Foundations of Financial Management
Seventeenth Edition

Brealey, Myers, and Allen


Principles of Corporate Finance
Thirteenth Edition

Brealey, Myers, and Allen


Principles of Corporate Finance, Concise
Second Edition

Brealey, Myers, and Marcus


Fundamentals of Corporate Finance
Tenth Edition

Brooks
FinGame Online 5.0

Bruner
Case Studies in Finance: Managing for Corporate Value
Creation
Eighth Edition

Cornett, Adair, and Nofsinger


Finance: Applications and Theory
Fifth Edition

Cornett, Adair, and Nofsinger


M: Finance
Fourth Edition

DeMello
Cases in Finance
Third Edition

Grinblatt (editor)
Stephen A. Ross, Mentor: Influence through Generations

Grinblatt and Titman


Financial Markets and Corporate Strategy
Second Edition

Higgins
Analysis for Financial Management
Twelfth Edition

Ross, Westerfield, Jaffe, and Jordan


Corporate Finance
Twelfth Edition

Ross, Westerfield, Jaffe, and Jordan


Corporate Finance: Core Principles and Applications
Sixth Edition

Ross, Westerfield, and Jordan


Essentials of Corporate Finance
Tenth Edition
Ross, Westerfield, and Jordan
Fundamentals of Corporate Finance
Twelfth Edition

Shefrin
Behavioral Corporate Finance: Decisions that Create Value
Second Edition

INVESTMENTS
Bodie, Kane, and Marcus
Essentials of Investments
Eleventh Edition

Bodie, Kane, and Marcus


Investments
Twelfth Edition

Hirt and Block


Fundamentals of Investment Management
Tenth Edition

Jordan, Miller, and Dolvin


Fundamentals of Investments: Valuation and Management
Ninth Edition

Stewart, Piros, and Heisler


Running Money: Professional Portfolio Management
First Edition

Sundaram and Das


Derivatives: Principles and Practice
Second Edition
FINANCIAL INSTITUTIONS AND MARKETS
Rose and Hudgins
Bank Management and Financial Services
Ninth Edition

Rose and Marquis

Financial Institutions and Markets


Eleventh Edition

Saunders and Cornett


Financial Institutions Management: A Risk Management
Approach
Tenth Edition

Saunders and Cornett


Financial Markets and Institutions
Seventh Edition

INTERNATIONAL FINANCE
Eun and Resnick
International Financial Management
Eighth Edition

REAL ESTATE
Brueggeman and Fisher
Real Estate Finance and Investments
Sixteenth Edition

Ling and Archer


Real Estate Principles: A Value Approach
Sixth Edition

FINANCIAL PLANNING AND INSURANCE


Allen, Melone, Rosenbloom, and Mahoney
Retirement Plans: 401(k)s, IRAs, and Other Deferred
Compensation Approaches
Twelfth Edition

Altfest
Personal Financial Planning
Second Edition

Harrington and Niehaus


Risk Management and Insurance
Second Edition

Kapoor, Dlabay, Hughes, and Hart


Focus on Personal Finance: An Active Approach to Help You
Achieve Financial Literacy
Sixth Edition

Kapoor, Dlabay, Hughes, and Hart


Personal Finance
Thirteenth Edition

Walker and Walker


Personal Finance: Building Your Future
Second Edition
page iii

Real
Estate
Principle
s
A Value
Approach
Sixth Edition

David C. Ling
Univ
ersit
y of
Flori
da

Wayne R.
Archer
Univ
ersit
y of
Flori
da
page iv

REAL ESTATE PRINCIPLES

Published by McGraw Hill LLC, 1325 Avenue of the Americas, New York, NY 10121.
Copyright © 2021 by McGraw Hill LLC. All rights reserved. Printed in the United
States of America. No part of this publication may be reproduced or distributed in
any form or by any means, or stored in a database or retrieval system, without the
prior written consent of McGraw Hill LLC, including, but not limited to, in any
network or other electronic storage or transmission, or broadcast for distance
learning.

Some ancillaries, including electronic and print components, may not be available
to customers outside the United States.

This book is printed on acid-free paper.

1 2 3 4 5 6 7 8 9 LWI 25 24 23 22 21 20

ISBN 978-1-260-57049-6
MHID 1-260-57049-5

Cover Image: The Jon B. Lovelace Collection of California Photographs in Carol M.


Highsmith’s America Project, LOC, Prints & Photo Division

All credits appearing on page or at the end of the book are considered to be an
extension of the copyright page.

The Internet addresses listed in the text were accurate at the time of publication.
The inclusion of a website does not indicate an endorsement by the authors or
McGraw Hill LLC, and McGraw Hill LLC does not guarantee the accuracy of the
information presented at these sites.

mheducation.com/highered
page v

Dedications

To my wife, Lucy, for


her continued
patience and
understanding
during this latest
revision of the book
and to our (now
grown) children,
Alex, Sarah, and
Rebecca, who
continue to try to
understand what
Dad actually does
for a living.
—DCL

To my wife, Penny,
who has always
matched our efforts
in this book with an
equal measure of
her devotion,
support, and
assistance; to our
children Stephen,
John, and Jennifer,
who generously
supported me with
enthusiasm for the
task; and to my
mother and Penny’s
mother, who always
kept the faith that I
would do something
useful with my
“typewriter.”
—WRA
page vi

About the Authors

DAVID C. LING

David C. Ling is the McGurn Professor of Real Estate at the


University of Florida. Professor Ling received an MBA (1977) in
finance and a Ph.D. (1984) in real estate and economics from The
Ohio State University. His academic and professional publications
have included articles on housing policy and economics, mortgage
markets and pricing, private commercial real estate investments,
publicly traded real estate companies, and performance evaluation.
Professor Ling’s research has been published in general interest
finance journals (Journal of Financial Economics), leading field
journals in finance and economics (e.g., Journal of Urban Economics,
Journal of Money, Credit and Banking, Journal of Banking and
Finance, National Tax Journal), as well as the leading real estate
focused journals (Real Estate Economics, Journal of Real Estate
Finance and Economics, Journal of Real Estate Research).
During 2000, Professor Ling served as President of the American
Real Estate and Urban Economics Association (AREUEA). From 2000
to 2005, he also served as editor of Real Estate Economics. Professor
Ling serves on numerous journal editorial boards including Real
Estate Economics, the Journal of Real Estate Finance and Economics,
the Journal of European Real Estate Research, and The Journal of
Real Estate Research. In 2011, Professor Ling was the recipient of
the George Bloom Award, which is presented annually by the
Directors of the American Real Estate and Urban Economics
Association for “outstanding contributions to the field of real estate
academics.” In 2010, he was awarded the David Ricardo Medal by
the American Real Estate Society, which is ARES’s highest honor “in
recognition of research productivity and influence over a twenty year
period.”
Additional information on Professor Ling is available at
http://warrington.ufl.edu/directory/person/5291.

WAYNE R. ARCHER

Wayne R. Archer is the William D. Hussey Professor at the


Warrington College of Business, University of Florida. He is Executive
Director of the Bergstrom Center for Real Estate Studies. He received
a Masters in economics from Wichita State University (1968) and a
Ph.D. in economics from Indiana University (1974). He has been a
faculty member at the University of Florida since 1971. From 1979
through 1981, he served as a visiting researcher at the Federal
Home Loan Bank Board and Federal Savings and Loan Insurance
Corporation. His research publications include articles on office
markets, house price indices, mortgage prepayment, mortgage
pricing, and mortgage default risk.
Professor Archer is a member of the American Real Estate and
Urban Economics Association, where he has served on the board of
directors, and also is a member of the American Real Estate Society.
He served on the editorial board of Real Estate Economics. He is a
Fellow of the Homer Hoyt Institute.
Professor Archer teaches in the University of Florida’s distance
MBA program, and has worked in industry education throughout his
academic career, including service as the educational consultant to
the Florida Real Estate Commission from 1985 to 1999. Among
additional roles, he served as a regular faculty member in programs
of the Mortgage Bankers Association of America, in the Institute of
Financial Education affiliated with the U.S. League of Savings and
Loan Associations, and, more recently, with Freddie Mac. In addition,
he has provided consulting services to industry and government
from time to time throughout his career, and also serves from time
to time as a consultant and advisor for real estate graduate
programs in other universities.
Additional information on Professor Archer is available at
http://warrington.ufl.edu/directory/person/5371/.
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offering opportunities for learning, discovery, and personal growth.
That’s why we are dedicated to bringing you a diverse collection of
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ebookmeta.com

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