Abstract

http://ssrn.com/abstract=231468
 


 



Brokerage, Intermediation, and Agency: The Financing and Pricing of Commercial Properties


Mark J. Garmaise


University of California, Los Angeles (UCLA) - Anderson School of Management

Tobias J. Moskowitz


University of Chicago - Booth School of Business; AQR Capital; National Bureau of Economic Research (NBER)

May 2000

CRSP Working Paper No. 517

Abstract:     
This paper examines a novel form of financial intermediation by studying the role of professional property brokers in the commercial real estate market. We find that broker intermediation is an important feature of the financing of commercial properties. Controlling for endogenous broker selection, we determine that hiring a broker significantly increases the probability of obtaining a bank loan by a striking 18 percent. We find, however, that brokers have only a modest effect on the sale price. Our results are most consistent with the theory that brokers and lending institutions establish informal relationships and provide less support for theories of broker monitoring or certification.

Number of Pages in PDF File: 39

JEL Classification: R31


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Date posted: June 19, 2000  

Suggested Citation

Garmaise, Mark J. and Moskowitz, Tobias J., Brokerage, Intermediation, and Agency: The Financing and Pricing of Commercial Properties (May 2000). CRSP Working Paper No. 517. Available at SSRN: http://ssrn.com/abstract=231468 or http://dx.doi.org/10.2139/ssrn.231468

Contact Information

Mark J. Garmaise (Contact Author)
University of California, Los Angeles (UCLA) - Anderson School of Management ( email )
110 Westwood Plaza
Los Angeles, CA 90095-1481
United States
Tobias J. Moskowitz
University of Chicago - Booth School of Business ( email )
5807 S. Woodlawn Avenue
Chicago, IL 60637
United States
773-834-2757 (Phone)
773-702-0458 (Fax)

Chicago Booth School of Business Logo

AQR Capital ( email )
Greenwich, CT
United States
National Bureau of Economic Research (NBER)
1050 Massachusetts Avenue
Cambridge, MA 02138
United States
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