March 15, 2007
Mr. Chris Mrozinski
Pennsylvania Real Estate Investment Trust
The Bellevue
200 South Broad St .
Philadelphia , PA 19102
RE: The Effects of Shopping Centers on Housing Prices
Dear Chris:
You have asked Jeff Green Partners/Retail Focus to assess whether research exists that can quantify the effect that developing a shopping center (or retail in general) has on nearby housing values.
We are not aware of an accepted methodology to assess this. Housing values are very location specific and are affected by numerous variables. The only accepted methodology we are familiar with is an independent appraisal of a specific residential property. That being said, market data is accumulated by a variety of sources and one can also find examples of using that data to predict future home prices. It would be virtually impossible to single out the effect of one shopping environment on the value of a home from the hundreds of other variables that are more likely to have a more direct relationship to the price of a house.
From our many years of real estate market research we can state with confidence that the availability of all services, especially retail, is critical to the overall health of a market. Strong markets lead to an environment of rising real estate values.
Cordially,
Jeffrey S. Green
President
Jeff Green Partners