Is Commercial Real Estate Gendered?

Abstract

Gender differences in labor market outcomes are well-documented and are expected to be more pronounced in male-typed domains such as commercial real estate. In this study, we expand the literature examining gender dynamics in the labor market, focusing specifically on gendered parity in commercial real estate brokerage. Employing robust procedures, we find that the unadjusted observed male agent property sales price premium and shorter marketing time are completely absorbed by property and market attributes as male agents list/sell properties with superior property characteristics, specifically larger and higher quality properties, when compared to female agents. The findings suggest that initial gendered differences in sales price and TOM are due to industry-driven agent selection, in which women do not fully participate in the largest and best part of the office market. Despite these findings showing gender performance neutrality, female agents are involved in significantly fewer property transactions than their male counterparts. We find evidence that this unequal labor outcome is associated with a type of affinity bias known as 'homophilic’ behavior, in which buyers and sellers prefer to work with agents of their same gender, resulting in more male agent representation.