ABSTRACT
Estimates of the size and value of the stock of industrial property are very difficult to make or find. The volume of transactions on the office market is defined as “the total area that in a certain period is sold or rented on the open market”. There is only a small active market in industrial property, in which prices can be set. No tax is specifically levied on development gains, although capital gains are taxed under company income tax. There is no development gains tax in the Netherlands, because nearly all land development is managed and controlled by the public administration and the balance of demand and supply of land and properties is mostly in equilibrium. When a developer of property builds speculatively he has to take account of the risk of vacancy. Some investments will be more affected by uncertainty than others and hence risk analysis will be more relevant to some investments than others.
