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Cornell Real Estate Review

Abstract

Real estate value reflects a factor of risk. Community risk inherently is captured in real estate value and is a composition of such elements as employment, income, and population growth (Carr, et al., 2003). These elements provide tenants to rent space and customers to buy products thereby increasing property value. The inverse, then, is true - that the decline of employment, income, or population will negatively impact value. Employment and population growth are accelerated with anchors. The term “anchor” in real estate denotes a use that provides stability and attraction that ultimately lowers risk and increases value. While there are commercial anchors such as large private corporations or retail centers, key community anchors come in the form of public or non-profit entities whose interest is in the long-term viability of the community. Anchors include schools, libraries, public halls, hospitals, and religious institutions. They provide important services to the community such as employment, interaction, communication, education, governance, health services, counseling, and moral teachings.

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