Applying the depreciated replacement cost method when assessing the market value of public property lacking comparables and income data

The growing interest in the enhancement, management, and sale of public building stock has increased the importance of their valuation and, as a result, the need to identify suitable methods for estimating value that take into account their peculiarities. They often boast architectural features (interfloor distance, layout, finishings, types of wiring/heating systems, etc.) that make them ‘extraordinary’ assets; in some cases, these features also endow them with monumental and/or historical importance. Thus, when valuating, it is necessary to adopt suitable methods. Where comparable examples or income-based parameters specifically concerning buildings with special features are lacking, the Depreciated Replacement Cost (DRC) method is the only system that can be used to estimate their market value. This paper aims to show how the DRC method can be applied in this specific market. The theoretical part will be coupled with a practical section where the DRC method will be used to estimate the market value of an extraordinary landmark building in Rome (Italy), the Palazzo degli Archivi di Stato (the State Archives building), in the EUR district, sold by EUR S.p.A. group (formerly known as Ente EUR) in 2015

Applying the depreciated replacement cost method when assessing the market value of public property lacking comparables and income data

The growing interest in the enhancement, management, and sale of public building stock has increased the importance of their valuation and, as a result, the need to identify suitable methods for estimating value that take into account their peculiarities. They often boast architectural features (interfloor distance, layout, finishings, types of wiring/heating systems, etc.) that make them ‘extraordinary’ assets; in some cases, these features also endow them with monumental and/or historical importance. Thus, when valuating, it is necessary to adopt suitable methods. Where comparable examples or income-based parameters specifically concerning buildings with special features are lacking, the Depreciated Replacement Cost (DRC) method is the only system that can be used to estimate their market value. This paper aims to show how the DRC method can be applied in this specific market. The theoretical part will be coupled with a practical section where the DRC method will be used to estimate the market value of an extraordinary landmark building in Rome (Italy), the Palazzo degli Archivi di Stato (the State Archives building), in the EUR district, sold by EUR S.p.A. group (formerly known as Ente EUR) in 2015

Integrated Evaluation for the Management of Contemporary Cities

This book highlights a selection of the best papers presented at the 2016 SIEV conference “The Laudato sì Encyclical Letter and Valuation. Cities between Conflict and Solidarity, Decay and Regeneration, Exclusion and Participation”, which was held in Rome, Italy, in April 2016, and brought together experts from a diverse range of fields – economics, appraisal, architecture, energy, urban planning, sociology, and the decision sciences – and government representatives. The book is divided into four parts: Human Ecology: Values and Paradigms; Integral Ecology and Natural Resource Management; Intergenerational Equity; and How to Enhance Dialogue and Transparency in Decision-making Processes. Cities are where 72% of all Europeans live, and this percentage is expected to rise to 80% by 2050. Given this trend towards urbanization, cities are continuously growing, which also entails a growing risk of social segregation, lack of security and mounting environmental problems. All too often, today’s cities have to cope with social and environmental crises, shifting the European urban agenda towards regeneration processes. Urban regeneration is more complex than merely renovating existing buildings, as it also involves social and environmental problems, inhabitants’ quality of life, protecting tangible and intangible cultural resources, innovation and business

A Literature Review on Construction Costs Estimation: Hot Topics and Emerging Trends

The aim of the present paper is to investigate the literature on the issues of construction costs in building production and urban development in order to identify the most relevant trends and describe the research context. In particular, a bibliometric analysis was carried out through one of the most acknowledged bibliometric databases, Scopus. Due to the great number of documents related to this topic, the literature review was conducted at three different levels: the first one investigates in a wider manner the cost value, the second one analyses the costs in building production and infrastructure, whereas the third one focuses on the evaluation approaches and new trends emerging from the literature. This study has allowed an advance in the comprehension of the main relevant issues related to this topic and an in-depth understanding of the role of evaluation methods as an instrument to synthesize the full range of aspects involved in the cost and in the project life-cycle. The increasing importance of topics like Building Information Modeling (BIM), Life Cycle Assessment (LCA) or Multicriteria analysis shows clearly a transition of the research to a sustainable view of the production operations and to a life cycle perspective of the projects

The Complexity of Value and the Evaluation of Complexity: Social Use Value and Multi-criteria Analysis

The \u201cchallenge of complexity\u201d is one of the many points of convergence between the Encyclical Laudato si\u2019 and the evolution of post-modern scientific thought. This study aims to analyze how complexity represents the essential element of the profound renewal in the scientific paradigm of the discipline of evaluation, particularly in regard to the theory of value, the categories of value, and the instruments of multi-criteria evaluation. Some contemporary theories of value propose, in fact, a complex source of value, such as surpluses of energy and of information (Ecological Economics) or as the creative and synergistic combination of three surpluses, namely energetic and non-entropic, genealogical-ecological, and scientific-cultural (the \u201cNuova Economia\u201d of Francesco Rizzo). These theories derive from a new interpretative key founded on the alliance between the natural sciences and the humanities. The creation of new categories of value, the social use value and the total economic value, constitute, moreover, the response of the science of evaluation to the social and disciplinary need to express a complex value that goes beyond both the private use value and the (normal and speculative) exchange value, and which include the multiplicity of values (ethical, aesthetic, economic, cultural, scientific, political, juridical, and equitable) that express the human being as a whole, no longer reduced merely to the homo economicus. The demand for the resolution of complex problems involving public and private territorial assets has led to the elaboration of models of multi-criteria evaluation through which to recompose the conflicting dualities of equity/efficiency, quality/quantity, and local/global into a uni-duality. In these models, the absence of a monetary unit of measurement constitutes an opportunity for re-founding a system of common social values and for allowing the participation of local communities in decision-making processes (Bentivegna 2016). The evaluation discipline, furthermore, may continue to participate directly in the great cultural, spiritual, and educational challenges contained in the Encyclical, to change the style of life and the patterns of production and consumption, making its own contribution in three spheres: scientific-cultural, through studies and research orientated towards the promotion of the culture of complexity, of multidisciplinarity, and of environmental protection; social-territorial, through collaboration with public institutions to elaborate operative instruments (models) of social participation in local decision-making processes; and educational, through the qualification and training of architects and engineers