A new office building is expected to produce the initial net operating income (NOI) of $10 at time 1. The NOI is expected to grow 5% per year, and the investor expects an annual IRR of 15%. If the construction cost is $90, what is the land value at time 0? According to Guerrieri et al. (2013), during the housing boom, high-income people migrate into the poor neighborhoods that are far from the rich neighborhoods, which in turn makes low-income people migrate out from their original place. In data, the default rate of non-recourse mortgages is higher than that of recourse mortgages. If a single tenant occupies the entire space, the rentable are and the usable area will be the same. Suppose a certain industry's location quotient is lower than one. Then, the industry can be interpreted as the base industry.