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Estate owners' ensemble: Mapping commercial real estate concentration using Finnish firm ownership

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  • Voutilainen, Ville

Abstract

The commercial real estate (CRE) market is an important source of financial stability risks, yet ownership structures remain opaque. This paper uses comprehensive Finnish register data to construct firm-level ownership network and identify owners of CRE firms. We document that government entities are the most important ultimate owners, holding about 10% of the sector's balance sheet. We show that government ownership predicts lower interest rate spreads on CRE bank loans, consistent with creditors perceiving such firms as less risky. Our results highlight the need to incorporate ownership structures into financial stability assessments and credit risk models.

Suggested Citation

  • Voutilainen, Ville, 2025. "Estate owners' ensemble: Mapping commercial real estate concentration using Finnish firm ownership," Bank of Finland Research Discussion Papers 12/2025, Bank of Finland.
    • Handle: RePEc:zbw:bofrdp:333957
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    References listed on IDEAS

    as
    1. Davis, E. Philip & Zhu, Haibin, 2011. "Bank lending and commercial property cycles: Some cross-country evidence," Journal of International Money and Finance, Elsevier, vol. 30(1), pages 1-21, February.
    2. Andras Borsos & Martin Stancsics, 2020. "Unfolding the hidden structure of the Hungarian multi-layer firm network," MNB Occasional Papers 2020/139, Magyar Nemzeti Bank (Central Bank of Hungary).
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    Keywords

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    JEL classification:

    • R33 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Nonagricultural and Nonresidential Real Estate Markets
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques

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