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Geographical Concentration in the Institutional Market for Office Property in England and Wales

Author

Listed:
  • Peter Byrne

    (Department of Real Estate & Planning, University of Reading)

  • Stephen Lee

Abstract

This paper examines the regional investment practices of institutional investors in the commercial real estate office market in 1998 and 2003 in England and Wales. Consistent with previous studies in the US the findings show that investors concentrate their holdings in a few (urban) areas and that this concentration has become more pronounced as investors have rationalised their portfolio holdings. The findings also indicate that office investment does not fully correlate with the UK urban hierarchy, as measured by population, but is focused on urban areas with high service sector employment. Finally, the pre-eminence of the City of London and and West End office markets as the key focus of institutional investment is confirmed.

Suggested Citation

  • Peter Byrne & Stephen Lee, 2006. "Geographical Concentration in the Institutional Market for Office Property in England and Wales," Real Estate & Planning Working Papers rep-wp2006-07, Henley Business School, University of Reading.
    • Handle: RePEc:rdg:repxwp:rep-wp2006-07
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    File URL: http://www.henley.reading.ac.uk/rep/fulltxt/0706.pdf
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    References listed on IDEAS

    as
    1. Mark Andrew & Steven Devaney & Stephen Lee, 2003. "Another Look at the Relative Importance of Sectors and Regions in Determining Property Returns," Real Estate & Planning Working Papers rep-wp2003-14, Henley Business School, University of Reading.
    2. Martin Hoesli & Colin Lizieri & Bryan MacGregor, 1997. "The Spatial Dimensions of the Investment Performance of UK Commercial Property," Urban Studies, Urban Studies Journal Limited, vol. 34(9), pages 1475-1494, August.
    3. Glenn R. Mueller, 1993. "Refining Economic Diversification Strategies for Real Estate Portfolios," Journal of Real Estate Research, American Real Estate Society, vol. 8(1), pages 55-68.
    4. Leon G. Shilton & Craig Stanley, 1996. "Spatial Concentration of Institutional Property Ownership: New Wave Atomistic or Traditional Urban Clustering," Journal of Real Estate Research, American Real Estate Society, vol. 12(3), pages 413-428.
    5. David Hartzell & John Hekman & Mike Miles, 1986. "Diversification Categories in Investment Real Estate," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 14(2), pages 230-254, June.
    6. Leon Shilton & Graig Stanley, 1995. "Spatial Filtering: Concentration or Dispersion of NCREIF Institutional Investment," Journal of Real Estate Research, American Real Estate Society, vol. 10(5), pages 569-582.
    7. David J. Hartzell & David G. Shulma & Vice President, 1987. "Refining the Analysis of Regional Diversification for Income-Producing Real Estate," Journal of Real Estate Research, American Real Estate Society, vol. 2(2), pages 85-95.
    8. Glenn R. Mueller & Barry A. Ziering, 1992. "Real Estate Portfolio Diversification Using Economic Diversification," Journal of Real Estate Research, American Real Estate Society, vol. 7(4), pages 375-386.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Peter Byrne & Stephen Lee, 2008. "Spatial Concentration in Institutional Industrial Real Estate Investment in the England and Wales," Real Estate & Planning Working Papers rep-wp2008-02, Henley Business School, University of Reading.
    2. 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, University of Reading.

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