TY - CONF T1 - Are There Investment Premiums for Mixed Use Properties? T2 - 24th Annual European Real Estate Society Conference Y1 - 2017 A1 - Peiser, Richard A1 - Raymond Torto A1 - Shohei Nakamura KW - apartment returns KW - investment return KW - mixed use KW - office returns KW - Walkability AB -

This paper investigates whether properties in mixed-use development have overall better financial performance than the other properties. We strategically choose four cases that we think well represent recent mixed-use developments in the United States, and compare key financial indicators for properties within and outside a half-mile radius from the project boundaries. The empirical study relies on quarterly property information since 2012, which we obtain from the National Council of Real Estate Investment Fiduciaries.

Our panel regression analysis shows that office and retail properties within the mixed-use geographies have 37%and 48%higher market values respectively than those outside. Total returns are also higher for office (67%) and retail (63%) within the radius as well. By contrast, we find no clear return premium for being located close to the mixed-use geographies for apartments. Higher market values for apartments within these areas for apartments suggest that any mixed-use return premium is already bid into their prices. We also test the robustness of the conclusion by using Walk Score as an alternative mixed-use indicator. Our findings are mixed and probably support the developer and financier biases against the complexity of engaging in mixed use projects.

JA - 24th Annual European Real Estate Society Conference T3 - ERES: Conference CY - Delft, Netherlands J1 - Conference: 2017 ID - oai-eres.id-eres2017_355 M3 - 10.15396/eres2017_355 ER -