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The Stock Return Difference between Industrial REITs and Manufacturing Firms: Space Supply and Demand Effects

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  • Hwahsin Cheng
  • Luis Mejia
  • Charles Tu

Abstract

Executive Summary.This paper compares and studies the stock performance of industrial real estate investment trusts (REITs) and other industrial companies. The return difference between industrial REITs and manufacturing firms is modeled as a function of industrial space supply and demand. A graphical analysis illustrates the connection between the manufacturing goods and the industrial space markets, showing that performance differences between the two markets can be explained by changes in space supply and demand. An empirical analysis using aggregate industry data confirms this premise.

Suggested Citation

  • Hwahsin Cheng & Luis Mejia & Charles Tu, 2006. "The Stock Return Difference between Industrial REITs and Manufacturing Firms: Space Supply and Demand Effects," Journal of Real Estate Portfolio Management, Taylor & Francis Journals, vol. 12(3), pages 249-260, January.
    • Handle: RePEc:taf:repmxx:v:12:y:2006:i:3:p:249-260
    DOI: 10.1080/10835547.2006.12089741
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    References listed on IDEAS

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