Commercial Real Estate Valuation : Fundamentals versus Investor Sentiment

@inproceedings{Ling2007CommercialRE,
  title={Commercial Real Estate Valuation : Fundamentals versus Investor Sentiment},
  author={David Ngo Chek Ling and Andy Naranjo},
  year={2007}
}
This paper investigates the role of fundamentals and investor sentiment in commercial real estate valuation. In real estate markets, heterogeneous properties trade in illiquid, highly segmented and informationally inefficient local markets. Moreover, the inability to short sell private real estate restricts the ability of sophisticated traders to enter the market and eliminate mispricing. These characteristics would seem to render private real estate markets highly susceptible to sentiment… CONTINUE READING

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