Preferences of Institutional Investors in Commercial Real Estate

被引:0
作者
Dragana Cvijanović
Stanimira Milcheva
Alex van de Minne
机构
[1] Cornell University,SC Johnson College of Business
[2] University of Warwick,Warwick Business School
[3] University College London,Bartlett Faculty
[4] University of Connecticut,School of Business
来源
The Journal of Real Estate Finance and Economics | 2022年 / 65卷
关键词
Institutional investor; Preferences; Real estate investment; Market segmentation; Size;
D O I
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中图分类号
学科分类号
摘要
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.
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页码:321 / 359
页数:38
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