Institutional Investors Tilt Their Real Estate Holdings Toward Quality, Too

Posted: 14 Sep 2000

See all articles by Stephen Malpezzi

Stephen Malpezzi

University of Wisconsin at Madison

James D. Shilling

DePaul University; National Bureau of Economic Research (NBER)

Abstract

This paper confirms and extends prior results regarding tilting of institutional investment in common stock toward quality. The evidence presented here suggests that, while both Real Estate Investment Trusts and institutional investors tilt their real estate holdings toward quality, the tilt is much more pronounced in the case of institutional investors. Controlling for quality, there is further evidence that institutional investors overweight locations where the share of local employments in business services, finance, insurance, and real estate, and transportation is relatively high (compared to national averages). This evidence is consistent with the hypothesis that significant sector tilting by institutional investors is induced by the constraints of the prudent man rule.

JEL Classification: G12, R30

Suggested Citation

Malpezzi, Stephen and Shilling, James D., Institutional Investors Tilt Their Real Estate Holdings Toward Quality, Too. Available at SSRN: https://ssrn.com/abstract=237816

Stephen Malpezzi (Contact Author)

University of Wisconsin at Madison ( email )

5257 Grainger Hall
Madison, WI 53706
United States
608-262-6007 (Phone)
608-263-0477 (Fax)

James D. Shilling

DePaul University ( email )

1 East Jackson Blvd.
Chicago, IL 60604
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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