Top Adding - Real Estate

One category of properties that have significant value increase potential are those that can be classified as monopoly properties. In many cases, an extreme result of growth controls and reg

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

ulations is the creation of properties with monopoly status, that is, properties that because of unique locational or other attributes are not replaceable or substitutable. This means that pr

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

operties that are bought before they revert to monopoly status and sold after they gain monopoly status should allow for big profits, since monopoly implies extreme scarcity, which in turn ca

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

n lead to significant price increases.

Berry(1) (1984) suggests that the number of monopoly properties has grown rapidly, due to widespread downzoning and outright prohibition of land uses.

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

He cites numerous examples of monopoly properties such as existing residences, motels, apartments, and mobile home parks on unique ocean frontages, where such uses have been restricted; exist

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

ing high-rise apartments in districts where height restrictions have been imposed; and industrial plants in areas where newly adopted environmental regulations restrict the further developmen

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

t of such uses. Berry indicates that the level of price increases that may take place after a property acquires monopoly status will depend on how long the property is likely to maintain such

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

a status, the nature of events that may cause its termination, and the magnitude of demand for such a property.

Berry's example of high-rise apartment buildings in districts where height re

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

strictions have been imposed entails a notion of localized scarcity, but in my view, it may not approach the level of scarcity implied by the term "monopoly" if other high-rise apartments can

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

be found in other districts within the urban area. Continuing improvements in communications and transportation have expanded significantly the geographic extent of property markets, and the

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

refore, concepts such as monopoly and scarcity should be examined within the scope of the entire urban area, as opposed to a small geographic scale. Within this context, real estate investors

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

need to think very carefully before attributing monopoly status to any given property.

Given significant locational substitutability within an urban area, and the fact that any type of prop

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

erty can be reproduced (except historical monuments, districts, and buildings perhaps), true scarcity and monopoly status may lie at the location level and not the property level. In other wo

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

rds, what may be truly monopolistic within an urban area are unique and scarce locational characteristics that can not be easily replicated. Think, for example, of a large coastal city, which

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

has a few beaches of unique physical beauty, which are also suitable for swimming. I would argue that these few beaches qualify as monopoly locations, and the properties at these locations m

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

ust qualify as monopoly properties by virtue of the monopoly status of those locations. To understand this, consider that while there are many hotels in a large urban area, there will be few

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

located on uniquely attractive beaches.

Within this context, the characterization "monopoly property" would be warranted only based on unique (and therefore, scarce) characteristics of the l

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

ocation, combined with unique characteristics of the property. Maybe one way to locate such properties is to first identify locations of unique and long-lasting advantages that guarantee long

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

-term high demand for its real estate. Subsequently, one needs to identify the types of properties in high demand due to the unique advantages of those locations, and investigate whether ther

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

e are zoning and growth controls that prohibit or will prohibit the development of such uses in the future.

(1) Berry, H. 1984. "Monopoly Property-Monopoly Value." Appraisal Journal, October

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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