How good is being different ? : the context of commercial real estate

Das, Prashant (Ecole hôtelière de Lausanne, HES-SO // University of Applied Sciences Western Switzerland) ; Smith, Patrick (Pennsylvania State University, College Park) ; Gallimore, Paul (University of Reading, United Kingdom)

A commercial real estate asset which stands out in some fashion may be qualif ied either as “atypical” or “trophy.” Past studies suggest conflicting price impacts of the two qualities. We examine distinctive features of such assets that determine price premi ums or discounts associated with them. By geospatially enrich ing a dataset of nearly 5000 hotel transactions consolidated from two independent sources, w e detect asymmetric price implications across local ly versus national ly superlative features. In particular, locally largest hotels are discounted while the nationally largest ones enjoy premiums. High status of the locality leads to significant price premium after controlling for submarket effects. Also, news coverage is ass ociated with significant price premium.


Keywords:
Conference Type:
full paper
Faculty:
Economie et Services
School:
EHL
Subject(s):
Economie/gestion
Publisher:
Bengaluru, India, 13-15 July 2016
Date:
Bengaluru, India
13-15 July 2016
2016
Pagination:
20 p.
Published in:
Proceedings of Asia Real Estate Society (AsRES) Conference 2016
Appears in Collection:

Note: The status of this file is: restricted


 Record created 2016-10-24, last modified 2019-06-11

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