Geographic Portfolio Allocations, Property Selection and Performance Attribution in Public and Private Real Estate Markets

45 Pages Posted: 5 Jun 2018

See all articles by David C. Ling

David C. Ling

University of Florida - Warrington College of Business Administration

Andy Naranjo

University of Florida

Benjamin Scheick

Villanova University - Department of Finance

Date Written: Summer 2018

Abstract

This article examines the effects of geographic portfolio concentrations on the return performance of U.S. public real estate investment trusts versus private commercial real estate over the 1996–2013 time period. Adjusting private market returns for differences in geographic concentrations with public markets, we find that core private market performance falls. Using return performance attribution analysis, we find that the geographic allocation effect constitutes only a small portion of the total return difference between listed and private market returns, whereas individual property selection within geographic locations explains, in part, the documented outperformance of listed versus private real estate market returns.

Suggested Citation

Ling, David Curtis and Naranjo, Andy and Scheick, Benjamin, Geographic Portfolio Allocations, Property Selection and Performance Attribution in Public and Private Real Estate Markets (Summer 2018). Real Estate Economics, Vol. 46, Issue 2, pp. 404-448, 2018, Available at SSRN: https://ssrn.com/abstract=3189528 or http://dx.doi.org/10.1111/1540-6229.12184

David Curtis Ling (Contact Author)

University of Florida - Warrington College of Business Administration ( email )

P.O. Box 117168
Gainesville, FL 32611
United States
352-392-9307 (Phone)
352-392-0301 (Fax)

Andy Naranjo

University of Florida ( email )

Gainesville, FL
United States

Benjamin Scheick

Villanova University - Department of Finance ( email )

United States

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