IDEAS home Printed from https://ideas.repec.org/a/taf/repmxx/v3y1997i2p117-128.html
   My bibliography  Save this article

Intrametropolitan Spatial Diversification

Author

Listed:
  • Joseph Rabianski
  • Ping Cheng

Abstract

Executive Summary. This study investigates the possibility of intrametropolitan geographic diversification. Four metropolitan areas, Atlanta, Boston, Chicago, and Dallas were selected for investigation. The vacancy rates of both office and industrial space in all submarkets of the four metropolitan areas are used as a proxy for asset performance. An ANOVA technique is employed to test the homogeneity of asset performance and identify the homogeneous groups of submarkets within each metropolitan area. The correlation coefficients of these homogeneous groups are then calculated to see whether low or negative correlations of asset performance exist among these groups. The results indicate that the asset performances within metropolitan areas are highly heterogeneous, and low or negative correlations exist among most submarkets or groups of submarkets. The findings imply that (1) portfolio risk can be reduced by diversification across submarkets within metropolitan areas, and (2) viewing metropolitan areas as homogeneous real estate markets may result in misdirected investment strategy, and the location impact imposed by submarkets should be recognized and properly analyzed.

Suggested Citation

  • Joseph Rabianski & Ping Cheng, 1997. "Intrametropolitan Spatial Diversification," Journal of Real Estate Portfolio Management, Taylor & Francis Journals, vol. 3(2), pages 117-128, January.
    • Handle: RePEc:taf:repmxx:v:3:y:1997:i:2:p:117-128
    DOI: 10.1080/10835547.1997.12089540
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10835547.1997.12089540
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10835547.1997.12089540?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.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kristin Wellner & Matthias Thomas, 2004. "Diversification Benefits from European Direct Real Estate Investment with a Special Focus on the German Market," ERES eres2004_231, European Real Estate Society (ERES).

    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:3:y:1997:i:2:p:117-128. 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.