Mixed Uses and the Redevelopment Option

This paper considers how the potential for mixing uses and redevelopment impact property value. Operating flexibility of this type is found to significantly increase property value when the correlation between payouts from different property types is low or when redevelopment costs are low. The ability to mix uses and redevelop over time is also shown to affect the timing of initial land development. The shape of the development boundary is shown to differ considerably depending on whether marginal revenue is constant or decreasing to scale. Both policy and empirical implications concerning the effects of multiple-use zoning are discussed. Copyright American Real Estate and Urban Economics Association.

Financial services and the urban system: an exploration

Financial services have come to represent an increasingly important sector in the economies of developed nations. Although a substantial literature has accumulated on this topic, relatively little attention has been given to the locational aspects of � nancial services. An attempt is made here to examine the spatial structure of this sector in terms of the urban system, drawing on the principles of central-place theory, the limitations and applicability of which are considered. This is followed by a discussion of the salient features of financial services within the overall urban system. After describing the differentiation of financial services in frequency terms, the hierarchical structure of the UK urban system is outlined. These two aspects are then related, in order to demonstrate the ordered nature of the spatial structure of financial services. There follows a brief discussion of the findings and their implications for future wor