Definition: Favorable influences originating outside a property that can increase its usefulness, demand, or value.
Example
A new nearby transit connection improves access to an office district.
Keep the distinction clear
External economies concern surrounding influences, not a building owner's internal cost savings. Their actual value effect depends on market evidence.
Related terms
Situs · Demand · Market Value
Keep studying
References: FREC Course II syllabus, Session 6
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