PlumX Metrics
SSRN
Embed PlumX Metrics

Preferences of Institutional Investors in Commercial Real Estate

SSRN, ISSN: 1556-5068
2019
  • 6
    Citations
  • 1,329
    Usage
  • 1
    Captures
  • 0
    Mentions
  • 0
    Social Media
Metric Options:   Counts1 Year3 Year

Metrics Details

  • Citations
    6
    • Citation Indexes
      6
  • Usage
    1,329
    • Abstract Views
      1,122
    • Downloads
      207
  • Captures
    1
  • Ratings
    • Download Rank
      294,360

Article Description

In this paper we analyze market segmentation by firm size in the commercial real estate transaction process. Using novel micro-level data, we look at the probability distribution of investors acquiring a specific bundle of real estate characteristics, distinguishing between investors based on the size of their real estate portfolio. We find evidence of market segmentation by investor size: institutional investors segment across property characteristics based on the size of their real estate portfolio. The probability that a large (small) seller will sell a property to a similar-sized buyer is higher, keeping all else equal. We explore potential drivers of this market segmentation and find that it is mainly driven by investor preferences. During the Global Financial Crisis (GFC), large investors were less likely to buy the ’average’ property, as compared to the period before or after the crisis, indicating time-varying investor preferences.

Bibliographic Details

Provide Feedback

Have ideas for a new metric? Would you like to see something else here?Let us know