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Institutional Investors Tilt Their Real Estate Holdings toward Quality, Too

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Author Info
Malpezzi, Stephen
Shilling, James D

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Abstract

This article confirms and extends prior results regarding tilting of institutional investment in common stock toward quality. The evidence presented here suggests that, while both real estate investment trusts and institutional investors tilt their real estate holdings toward quality, the tilt is much more pronounced in the case of institutional investors. Controlling for quality, there is further evidence that institutional investors overweight locations where the share of local employment in business services, finance, insurance, and real estate, and transportation is relatively high (compared to national averages). This evidence is consistent with the hypothesis that significant sector tilting by institutional investors is induced by the constraints of the prudent man rule. Copyright 2000 by Kluwer Academic Publishers

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Publisher Info
Article provided by Springer in its journal Journal of Real Estate Finance & Economics.

Volume (Year): 21 (2000)
Issue (Month): 2 (September)
Pages: 113-40
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Handle: RePEc:kap:jrefec:v:21:y:2000:i:2:p:113-40

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  1. Stephen Malpezzi & James D. Shilling & Yu Yun Jessie Yang, 2001. "The Stock of Private Real Estate Capital in U.S. Metropolitan Areas," Journal of Real Estate Research, American Real Estate Society, vol. 22(3), pages 243-270. [Downloadable!]
  2. John D. Benjamin & Peter Chinloy & William G. Hardin III, 2007. "Institutional-Grade Properties: Performance and Ownership," Journal of Real Estate Research, American Real Estate Society, vol. 29(3), pages 219_240. [Downloadable!]
  3. Stephen Malpezzi, 2006. "NIMBYs and Knowledge: Urban Regulation and the "New Economy"," Berkeley Program on Housing and Urban Policy, Working Paper Series 1033, Berkeley Program on Housing and Urban Policy. [Downloadable!]
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  4. Peter Byrne & Stephen Lee, 2007. "Spatial Concentration in Institutional Investment in the UK: Some comparisons between the Retail and Office Sectors," Real Estate & Planning Working Papers rep-wp2007-01, Henley Business School, Reading University. [Downloadable!]
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