Determinants of Cap Rates in U.S. Office markets
Accepted version
Peer-reviewed
Repository URI
Repository DOI
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Authors
Chuangdumrongsomsuk, M
Fuerst, Franz https://orcid.org/0000-0001-5317-1469
Abstract
This study examines the determinants of office capitalization rates across three major U.S. cities: New York City, Chicago, and Los Angeles. Analyzing a sample of 1,804 office properties for the 2000 to 2013 time period, the findings suggest that the drivers of capitalization rates vary considerably across the three cities, even for comparable properties. These differences can hypothetically be beneficial for diversifying real estate portfolio investments. The results further demonstrate that capitalization rates are largely driven by local, as well as property-specific variables.
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Keywords
Journal Title
Journal of Real Estate Literature
Conference Name
Journal ISSN
0927-7544
Volume Title
25
Publisher
American Real Estate Society |