The research project outlined proposes to investigate the relationship between the market significance of foreign investors in major office markets and commercial real estate capitalization rates. Drawing upon a database of commercial real estate transactions, it is proposed to model the determinants of market capitalization rates with a particular focus on the significance of the proportion of market transactions involving foreign investors. Whilst there are strong a priori grounds to expect positive price effects from foreign investment, the research will provide quantitative estimates of the extent of potential effects.
McAllister, Patrick, and Anupam Nanda. The Impact of Cross-border Real Estate Investment on Commercial Real Estate Capitalisation Rates In 21st Annual European Real Estate Society Conference. ERES: Conference. Bucharest, Romania, 2014.
Section: E: International Real Estate