Commercial Real Estate Returns and Innovation

Journal of Real Estate Research, Forthcoming

39 Pages Posted: 18 Mar 2022 Last revised: 4 Nov 2022

See all articles by Xun Bian

Xun Bian

University of North Texas

Erik Devos

University of Texas at El Paso - College of Business Administration - Department of Economics and Finance

Zifeng Feng

The University of Texas at El Paso

Date Written: October 15, 2022

Abstract

We investigate the relation between commercial real estate (CRE) returns and regional innovativeness and find that regions with more innovation exhibit higher total returns on commercial property. And, when we investigate the extent to which income return and capital return on commercial properties are related to local innovativeness, we report a positive relation between innovativeness and income return but little to no association between innovativeness and capital return. Our paper also provides some initial evidence suggesting that local innovativeness is related to better future CRE performance. Overall, this paper suggests that the innovativeness of a region is economically and statistically positively related to CRE returns, adding to a budding literature investigating CRE returns and extensive literature researching innovation.

Keywords: Innovation, Patent, Commercial Real Estate, Return, NCREIF

JEL Classification: R11, R33, O30

Suggested Citation

Bian, Xun and Devos, Erik and Feng, Zifeng, Commercial Real Estate Returns and Innovation (October 15, 2022). Journal of Real Estate Research, Forthcoming, Available at SSRN: https://ssrn.com/abstract=4018564 or http://dx.doi.org/10.2139/ssrn.4018564

Xun Bian

University of North Texas ( email )

G. Brint Ryan College of Business
1155 Union Circle #311160
Denton, TX 76203
United States
(940) 369-8309 (Phone)

Erik Devos

University of Texas at El Paso - College of Business Administration - Department of Economics and Finance ( email )

500 W. University Ave.
El Paso, TX 79968
United States
915 747 7770 (Phone)

HOME PAGE: http://utminers/utep.edu/hdevos

Zifeng Feng (Contact Author)

The University of Texas at El Paso ( email )

500 W. University Ave.
El Paso, TX 79968
United States

HOME PAGE: http://https://sites.google.com/view/zifeng-feng/home

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