Advanced Search
MyIDEAS: Login to save this paper or follow this series

Should Commercial Real Estate Be Included in the S&P 500?

Contents:

Author Info

  • Peter Linneman
Registered author(s):

    Abstract

    In the 1980’s leading commercial operators found it unnecessary to access public equity markets in order to grow, but by 1993, owners needed equity and commercial real estate finance was integrated into the mainstream of global financial markets. Publicly traded real estate companies represent approximately one percent of the value of all US publicly traded companies. However, a glaring omission from the S&P 500 index today is commercial real estate. No commercial real estate company has been included in the S&P 500 since the late 1970’s. There is no substantive difference between REITs and "normal" corporations in the US investment landscape. Investors who use the S&P 500 as an important benchmark are being deprived of the benefits of commercial real estate investment. Failure to include these companies causes the S&P index to misrepresent the true pattern of common stock returns, particularly in view of their relatively low betas - 0.41 or less for the largest company.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://realestate.wharton.upenn.edu/papers/full/390.pdf
    Download Restriction: Access to the full text of the articles in this series is restricted

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Paper provided by Wharton School Samuel Zell and Robert Lurie Real Estate Center, University of Pennsylvania in its series Zell/Lurie Center Working Papers with number 390.

    as in new window
    Length:
    Date of creation:
    Date of revision:
    Handle: RePEc:wop:pennzl:390

    Contact details of provider:
    Postal: 256 South 37th Street, Philadelphia, PA 19104-6330
    Phone: 215.898.9687
    Fax: 215.573.2220
    Email:
    Web page: http://zell-lurie-center.wharton.upenn.edu/working.html
    More information through EDIRC

    Related research

    Keywords:

    This paper has been announced in the following NEP Reports:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:wop:pennzl:390. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Krichel).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.