Nonlocal Office Investors: Anchored by their Markets and Impaired by their Distance

• Published in: The journal of real estate finance and economics Vol. 50; no. 1; pp. 129 - 149
• Main Authors: Liu, Yu, Gallimore, Paul, Wiley, Jonathan A.
• Format: Journal Article
• Language: English
• Published: Boston Springer US 01.01.2015; Springer Nature B.V
• Subjects: Asset acquisitions; Asymmetric information; Asymmetry; Bias; Commercial real estate; Costs; Economic models; Economic statistics; Economic theory; Economics; Economics and Finance; Efficiency; Financial Services; Housing; Institutional investments; Investment; Investors; Literature reviews; Market efficiency; Prices; Property; Purchasing; Real estate; Real estate appraisal; Real estate market; Regional/Spatial Science; Sales; Studies; U.S.A; United States > US; Information asymmetry; Investor clienteles; Market efficiency

Nonlocal investors purchase and sell investment property in a distant metropolitan area. In this study, we identify capital value underperformance for nonlocal investors on both sides of the transaction, when they purchase and when they sell. The commercial real estate transactions data include a na...