IDEAS home Printed from https://ideas.repec.org/a/taf/repmxx/v18y2012i3p289-303.html

Some searches may not work properly. We apologize for the inconvenience.

   My bibliography  Save this article

Understanding Commercial Real Estate Indices

Author

Listed:
  • Junjie Sun
  • Xiaolong Yang
  • Xinlei Zhao

Abstract

This paper examines five indices in the commercial real estate (CRE) markets: the National Association of Real Estate Investment Trusts (NAREIT) Index, the National Council of Real Estate Investment Fiduciaries (NCREIF) Property Index (NPI), the Transaction Based Index (TBI), Moody’s/Real Commercial Property Price Indices (CPPI), and CoStar Commercial Repeat-Sale Indices (CCRSI). We find much heterogeneity in the information content of these indices. NAREIT, NPI, and TBI may not be appropriate measures of current CRE market conditions in general, even though these indices, and especially the first two, are commonly used. We find substantial information differences between CPPI (an index driven by high-value CRE properties) and CCRSI (an index driven by low-value CRE properties) and the difference in information content is notable. This finding indicates that high- and low-value CRE markets are not closely linked. As most CRE indices are driven by high-value CRE markets, our findings suggest that most of these indices may not be very useful to non-institutional CRE investors, local banks who are the main lenders of such loans, or investors in CMBS where the underlying assets include low-value CREs. Finally, based on either CCRSI or CCPI, we conclude that CRE markets are local.

Suggested Citation

  • Junjie Sun & Xiaolong Yang & Xinlei Zhao, 2012. "Understanding Commercial Real Estate Indices," Journal of Real Estate Portfolio Management, Taylor & Francis Journals, vol. 18(3), pages 289-303, January.
    • Handle: RePEc:taf:repmxx:v:18:y:2012:i:3:p:289-303
    DOI: 10.1080/10835547.2012.12089936
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10835547.2012.12089936
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10835547.2012.12089936?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:repmxx:v:18:y:2012:i:3:p:289-303. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/repm20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.