Selecting the Best Markets
- Topics:
- Market Studies
- Tags:
- Capital Structures,
- CB Richard Ellis,
- Equity,
- Finance,
- Financial Services,
- Investment,
- Mortgages
- Source:
- CB Richard Ellis
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Overview: The article states that the determination of "best" is multi-dimensional and requires a research approach that provides the proper flexibility. In today's research world research analysts are combining a top-down and bottom-up approach to market analysis. The goal is to combine the macroeconomy approach of forecasting market rents and occupancy with the property specific details to forecast property returns. The property-specific risk is based on the extent to which a specific property is affected by market wide fluctuations due to such idiosyncratic characteristics as its lease rollover schedule, existing rent levels, occupancy percentage, operating expenses, capital expenditures, etc. Clearly, with more reliable and intuitive income, risk and return measures real estate research will be applying more advanced applications to both debt and equity portfolios. This includes the application of modern portfolio theory, enhanced techniques for ranking markets, better methods for identifying appropriate investment strategies by market and the ability to quantify market risk in commercial mortgage and equity portfolios.
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Format: PDF | Size: 15KB | Date: Jan 2003 | Pages: 2
