The Use of GIS & OLAP for Accurate Valuation of Developable Land

Executive Summary. The purpose of this study is to describe a beginning best practice technique for the valuation of brownfields that incorporates business cycle as well as market analysis. The literature suggests that a developmental model that uses Monte Carlo methods to estimate land value as a residual, in light of all risks, is likely to be the most appropriate methodology. This study examines approaches to market analysis and illustrates how technology can provide more accurate results. It suggests a reference scope of work for market analysis. It is badly needed in order to communicate the level of market analysis that has been used in an appraisal for international valuation standards. This article is the winner of the Real Estate Development manuscript prize (sponsored by the Urban Land Institute) presented at the American Real Estate Society Annual Meeting.