Valuation of urban industrial land:: An analytic network process approach

In this paper an application of the Analytic Network Process (ANP) to asset valuation is presented. It has two purposes: solving some of the drawbacks found in classical asset valuation methods and broadening the scope of current approaches. The ANP is a method based on Multiple Criteria Decision Analysis (MCDA) that accurately models complex environments. This approach is particularly useful in problems which work with partially available data, qualitative variables and influences among the variables, which are very common situations in the valuation context. As an illustration, the new approach has been applied to a real case study of an industrial park located in Valencia (Spain) using three different models. The results confirm the validity of the methodology and show that the more information is incorporated into the model, the more accurate the solution will be, so the presented methodology stands out as a good alternative to current valuation approaches. (c) 2006 Elsevier B.V. All rights reserved.