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Working Papers

Fair Value for Real Estate

Working paper #684
Brian D. Ruben and Matthew G. Kimmel

Current market conditions have paralyzed the capital markets upon which owners and investors in commercial real estate have long depended. This monumental impasse has created illiquidity and large price differentials between what a willing buyer and seller might normally accept for real estate investments. Since the second quarter of 2008, real estate values have been on a path of steady descent. Significantly reduced transaction volume and lack of relevant and reliable market information is creating challenges for companies, investors, appraisers, and others with respect to assessing or determining the fair value of real estate investments.

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