[Excerpt] Nearly three decades ago, Tobin (1969) formulated a theory of investment that relies on the ratio of marginal asset values to replacement costs- Tobin’s Q. The Q-ratio appears in the corporate finance literature as a measure of firms’ intangible values. Changes in Q as a result of restructurings and other corporate strategic moves indicate shareholder wealth maximizing behaviors. No such applications appear in the real estate literature, although important opportunities exist for applying Q-ratios to determine the intangible value of real estate. As an equilibrium concept the Q-ratio has tremendous potential for analyzing the strengths and weaknesses of markets for investment in existing assets and for analyzing development opportunities.