Keywords

transaction-based indices, commercial real estate, full-disclosure markets

Abstract

This study addresses the characteristics of a transaction-based index of commercial real estate as reported in a full-disclosure market. Prior research on transaction-based indices has enumerated various shortcomings for commercial real estate markets. This study circumvents many of these problems by using a large data set of commercial property transactions obtained for the Phoenix, Arizona metropolitan statistical area. The empirical analysis demonstrates that investors stand to gain considerable insight by comparing fulldisclosure, transaction-based indices with voluntarydisclosure, appraisal-based indices. The results suggest that full-disclosure indices avoid some of the institutional biases associated with other benchmarks of commercial real estate performance. In addition, some public policy issues emerge on the role of state mandated disclosure rules.

Original Publication Citation

Downs, D. and B. Slade, 1999, Characteristics of a Full-Disclosure Transaction-Based Index of Commercial Real Estate, The Journal of Real Estate Portfolio Management, 5:1, pp. 95 – 104.

Document Type

Peer-Reviewed Article

Publication Date

1999

Publisher

The Journal of Real Estate Portfolio Management

Language

English

College

Marriott School of Business

Department

Finance

University Standing at Time of Publication

Full Professor

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