Individual assets, market structure and the drivers of return

Devaney, S. ORCID: https://orcid.org/0000-0002-1916-2558 and Lizieri, C. (2005) Individual assets, market structure and the drivers of return. Journal of Property Research, 22 (4). pp. 287-307. ISSN 1466-4453 doi: 10.1080/09599910600558504

Abstract/Summary

Much UK research and market practice on portfolio strategy and performance benchmarking relies on a sector‐geography subdivision of properties. Prior tests of the appropriateness of such divisions have generally relied on aggregated or hypothetical return data. However, the results found in aggregate may not hold when individual buildings are considered. This paper makes use of a dataset of individual UK property returns. A series of multivariate exploratory statistical techniques are utilised to test whether the return behaviour of individual properties conforms to their a priori grouping. The results suggest strongly that neither standard sector nor regional classifications provide a clear demarcation of individual building performance. This has important implications for both portfolio strategy and performance measurement and benchmarking. However, there do appear to be size and yield effects that help explain return behaviour at the property level.

Item Type	Article
URI	https://reading-clone.eprints-hosting.org/id/eprint/36493
Item Type	Article
Refereed	Yes
Divisions	Henley Business School > Real Estate and Planning
Uncontrolled Keywords	Portfolio structure, real estate; return generation process
Publisher	Taylor and Francis
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