The economic effects of owner distance and local property management in US office markets

Name: The economic effects of owner distance and local property management in US office markets
Author: Eichholtz, P., Holtermans, R., Yönder, Erkan

İsim	The economic effects of owner distance and local property management in US office markets
Yazar	Eichholtz, P., Holtermans, R., Yönder, Erkan
Basım Tarihi:	2016-07-04
Basım Yeri	- Oxford Publishing
Konu	Commercial real estate, Investor proximity, Real estate investment, Rental value, Property management
Tür	Süreli Yayın
Dil	İngilizce
Dijital	Evet
Yazma	Hayır
Kütüphane:	Özyeğin Üniversitesi
Demirbaş Numarası	1468-2710
Kayıt Numarası	52c809f1-2f39-4cd7-b74b-a57310c49e59
Lokasyon	International Finance
Tarih	2016-07-04
Örnek Metin	This paper is one of the first empirical studies to investigate the role of owner proximity or distance on the performance of commercial real estate and it is the first to analyze the economic benefits of property management in that regard. Using a large dataset of U.S. offices we analyze the relationship between investor distance to their assets and the effective rent of these assets, and study the extent to which property managers can influence this relation. We construct propensity score weighted hedonic rent models to control for other known rent determinants. It turns out that proximity matters: holding everything else constant, investors located closely to their office properties are able to extract significantly higher rents from these assets, especially if these buildings are of low quality. Interestingly, property managers can affect this relation, mitigating the adverse effects of investor distance on effective office rents. Especially if the property owner does not reside in the same state as the building, external property management is of importance, most prominently so for class-B office buildings.
DOI	10.1093/jeg/lbv018
Cilt	16

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The economic effects of owner distance and local property management in US office markets

Yazar Eichholtz, P., Holtermans, R., Yönder, Erkan

Basım Tarihi 2016-07-04

Basım Yeri - Oxford Publishing

Konu Commercial real estate, Investor proximity, Real estate investment, Rental value, Property management

Tür Süreli Yayın

Dil İngilizce

Dijital Evet

Yazma Hayır

Kütüphane Özyeğin Üniversitesi

Demirbaş Numarası 1468-2710

Kayıt Numarası 52c809f1-2f39-4cd7-b74b-a57310c49e59

Lokasyon International Finance

Tarih 2016-07-04

Örnek Metin This paper is one of the first empirical studies to investigate the role of owner proximity or distance on the performance of commercial real estate and it is the first to analyze the economic benefits of property management in that regard. Using a large dataset of U.S. offices we analyze the relationship between investor distance to their assets and the effective rent of these assets, and study the extent to which property managers can influence this relation. We construct propensity score weighted hedonic rent models to control for other known rent determinants. It turns out that proximity matters: holding everything else constant, investors located closely to their office properties are able to extract significantly higher rents from these assets, especially if these buildings are of low quality. Interestingly, property managers can affect this relation, mitigating the adverse effects of investor distance on effective office rents. Especially if the property owner does not reside in the same state as the building, external property management is of importance, most prominently so for class-B office buildings.

DOI 10.1093/jeg/lbv018

Cilt 16