External Obsolescence ?

[PropertyEconomics]

You haven't really given us any idea about how buyers would perceive it at all. Its cant possibly have an effect on value if nobody knows its there. For it to present an obsolescence it must be objectionable at some level. What is that objectionable element in this case?

Metamorphic .... The presence of the facility. Obviously those in the neighborhood will know its there. Its a 30 acre facility. But I appreciate your lessons.

 

[aussie ken]

I have been hired to do a consultation regarding the effects on value (within a .5 mile radius) of a gasoline tank farm (a gasoline distribution center). Traffic along the highway and the main entry road (no residences located on this road) is anticipated to increase by in excess of 100 trucks per day.
The question is, are residential values within one half mile of the tank farm adversely affected?
Any experience you have would be helpful.

Thanks in advance .... PE

Hi PE........from Down Under I might be able to offer some local insight....certainly there are differances but human reaction and percived value impact caused by these large installations does occur. Locally I have plotted a regular decline in values as one approaches such large installations......... however I cannot offer a set % reduction to distance ratio........only that it does occur............Locally many banks will not lend on residential properties close to these installations due to hydrocarbons in ground water, fire hazards, health issues, etc..........the general rule of thumb I use is that any property within 150 metres of the installation is classified as a higher lending risk rating than what is the normal average for the general locale............150 metres is about 10 property frontages locally. Hope this helps.