Commercial Property Investment Research Articles

Is there an optimum way for the commercial property market to adjust to the changing circumstances?

PurposeThis article seeks to offer an answer. It explores the criteria on which commercial property market participants can develop strategies in hugely challenging circumstances. For this purpose, a survey-based approach was developed with work conducted with property-market professional in the United Kingdom (UK), France, Germany and Sweden to produce a criteria-based tool supporting adaption to changing market circumstances.Design/methodology/approachThe data have been analyzed using statistical analysis. The data's statistical analysis included Cronbach's alpha's application to evaluate the respondents' replies' reliability. A entral tendency test was used to identify the means of relevance of the criteria. The Mann–Whitney U test was used to determine potential material differences between the UK and other countries with Bonferroni corrections applied to minimize type-I errors.FindingsThirty characteristics have been identified that impact the dynamics of the commercial property market. Their relevance to the commercial property market was determined using a survey. The literature analysis showed that the researchers paid more attention to quantitative criteria and their comparison. The survey showed that the relevance of criteria to the commercial property market dynamics is unequal. However, the survey results showed that it is most important to pay attention to emotional criteria to adapt to uncertainty changing conditions. The problem of the environment has been on the agenda for the last four decades. Therefore, the fact that the results of the study showed that the environmental criteria are the least significant is unexpected.Research limitations/implicationsThe study involved economically developed countries of Europe. Extending the study's geographical scope would be valuable in revealing whether the same differences exist in other geographical areas (such as Australia or the USA).Practical implicationsThe practical implication of the analysis may be to facilitate the decision-making process of either selecting a country for commercial property investment or selecting the most sensitive and relevant criteria for the decision-making.Originality/valueCriteria for commercial property market performance which promote successful property investment have been developed. Moreover, the criteria affecting the commercial property market have been weighted by their relevance to the market and their sequence of relevance has been established. And finally, the developed criteria have been placed into five groups that could serve as a foundation for a macro-level assessment of commercial property market dynamics.

Coworking space practices: assessing space users’ preferences and challenges in Ibadan, Nigeria

PurposeCoworking spaces are recent developments in commercial property investment portfolio in Nigeria. Given the user-centered nature of coworking space practices, the purpose of this paper is to examine the factors influencing users’ preference for coworking, and the challenges associated with the use of coworking spaces in the emerging Nigeria property market.Design/methodology/approachThis study used a quantitative research approach. This study sampled nine (9) traditional coworking spaces in Ibadan property market, from which 15 coworking space users were randomly selected in each of the coworking hubs. From a total of 135 respondents, only 45 (33.33%) questionnaires were retrieved and found suitable for analysis. The data collected were analyzed using descriptive and inferential statistics.FindingsThe results showed that economic and social motivators were significant drivers influencing coworkers’ decision to cowork. Personal factors were the least rated. Also, top-rated features/facilities that users prefer in the workstations include a neat environment and conveniences, uninterrupted power supply, serenity of the neighborhood and ease of signing up. The findings also showed that the challenges being faced by the users were predominantly about disturbance/noise from guests and/or other users, lack of privacy, poor internet connectivity, power failure and inability to personalize workspace (in decreasing order).Practical implicationsThis study has implications for investors and users of coworking spaces in comparable developing markets. Also, the study will influence strategies and decisions of private firms/companies, as it relates to the work pattern of their employees.Originality/valueThis paper is relevant given the emergent behavioral changes, necessitated by the changing work practices. This compels the need for a reevaluation of the preferences and challenges associated with coworking spaces, especially as it relates to the users of flexible office spaces in emerging economies.

MEASURING PERFORMANCE OF RISK-RETURN IN RESIDENTIAL AND COMMERCIAL REAL ESTATE INVESTMENTS IN SOUTH-SOUTH, NIGERIA

The study measures the risk-return performance of residential and commercial real estate investments in South-South, Nigeria from 2009 to 2018. The study adopted the survey research design and purposive sampling technique was used to select estate surveying and valuation firms. Data was analysed using mean total returns, standard deviation and analysis of variance. The test of the first hypothesis indicates that residential real estate investment in Port Harcourt has the highest mean total return and performed better than Calabar and Uyo and implies that total returns of residential real estate investments are significantly different in the study area. For commercial property, Uyo outperformed that of Calabar and Port Harcourt in terms of return. The second hypothesis results indicate that location of property is a significant determinant of risk. The result shows that the mean risk in Port Harcourt for residential real estate investment is significantly different from the risk in Calabar and Uyo. This implies that there is significant difference between risks of residential properties in the study area. For commercial property investment risk, the result shows the risks of investment in offices are higher than shops. For location, Uyo commercial properties produced the highest risk.

Real Estate Market Performance in Nigeria: Longitudinal Evidence from Residential and Commercial Property Sectors in Port Harcourt

The low transparency characterization of the real estate market in Africa presents an antithesis to the promising potentials of the market to global real estate investors and mutual funds. In spite of this, there appears an asymmetric synchronicity between increasing global attention towards investment potentials of the Sub-Saharan African real estate industry and an almost 50% market opacity. In addressing this anomaly, the study examines residential and commercial real estate returns from a Nigeria, using Port Harcourt city as test market. It has objectives of determining the rental value trend of residential and commercial properties in Port Harcourt, Nigeria, and the longitudinal rental growth rate of residential and commercial properties in the study area. The study employed qualitative technique to collect, peruse and analyze data from valuation reports obtained from Estate Surveying and Valuation firms in the study area. The resulting data were subjected to content analysis, Analysis of Variance and Correlation. The population of the study was all residential and commercial properties which have been subjected to rental valuation by designated professionals over the periodic scope of the study. Therefore, the unit of analysis was all rental valuation reports on residential and commercial properties in the study area. Given the infinite nature of the population, Godden (2004) formula was used for sample size determination of 384. It was found that rents from residential and commercial property investments in Port Harcourt, Nigeria recorded a steady increase within 2009 to 2018, with mean rental growth rates of 10.8% and 17.8% for residential and commercial properties respectively. It was concluded that the real estate market in Port Harcourt is a high performing market, with the commercial sector offering high return on investment potentials for investors.

International Real Estate Review

This paper identifies the impact of macroeconomic determinants of commercial property investment and development markets in Australia. A Hodrick-Prescott (HP) filter is used to filter the cyclical components of commercial property investment and development time series. In order to identify the long-run relationships and short-run dynamics, coupled with causality between these factors and property cycles, the investment and development property cycles are analyed with respect to the movement of nine macroeconomic factors by using time series data from 1987 to 2016. The empirical results suggest that the Australian commercial property market is often in an overdemand situation rather than oversupply, which can be explained by the different patterns of the property cycles on the demand and supply sides. Property investment cycles are shorter and more volatile than development cycles at around 8-10 years and more than 20 years, respectively, since there is a larger elasticity of the macroeconomic factors that underlie the investment market with short-term dynamics, while the development cycle is mainly affected by such factors moderately in the long run. Both the investment and development markets are intensively affected by financing related variables rather than market-sentiment and economic-cycle related variables.

Forecasting Performance of Commercial Property Investments in Lagos Metropolis

Investors rely on statistical forecasts to guide their investment decisions. Given the relative opportunity cost associated with these decisions, and the huge financial implication of commercial property investments, such insights are invaluable; because investors can choose investments from an informed position. Despite this recognised benefit of forecasting, there has been little focus on forecasting the performance (total returns) of commercial property investments in Lagos Metropolis. This paper, therefore, aims to forecast the total returns of two commercial property investment types (shops and offices) in five sub-markets (Yaba, Ikeja, Ikoyi, Victoria Island and Lagos Island) within the Lagos property market. In doing so, the study uses longitudinal data for the capital and rental values of commercial property investments in Lagos between 2006 to 2018 alongside a simple regression model for 2019-2021 predicted total returns. Autocorrelation was used in testing the predictive validity of this data set. Furthermore, multiple-forecasts were evaluated simultaneously for accuracy and, together, they illustrate the difficulty of compiling a robust dataset in the absence of a central database. This paper suggests that the sampled total returns for the five sub-markets fluctuate and tend to decline as seen in the Ordinary Least Square Regression technique for 2019 to 2021. The results also suggest a low autocorrelation in most of the sub-markets, which indicates that the observed pattern of returns may not continue. This paper recommends that investors be wary of commercial property investment in Lagos Metropolis, due to the observed poor performance (low and fluctuating total returns). It is also recommended that a property database be constructed to improve property data reliability and allow for the application of complex quantitative forecasting techniques.

The Relationship Between Road Infrastructure Budgetary Expenditures and Commercial Property Investment Returns. Case Study of Fadikpe Area Minna, Nigeria

Abstract The paper examines the relationship existing between commercial property investment returns and public capital investment (budgetary expenditures) on road infrastructure in Fadikpe area, Minna (Nigeria) with the aim of determining the degree of impact of public capital investment on commercial property investment returns. The paper addresses a pertinent policy and practice question on the impact of government’s budgetary expenditures on real estate sector of the economy. Government increasingly faces funding challenges in providing new infrastructure or improvement of existing ones, thus, keen to know the areas of greater impact of its expenditures and the extent to which the benefits from the impact may go in augmenting or providing funds (through tax) for new road infrastructure provision or repair of existing ones. The research uses the before-and-after case method to identify an increase in property values (rental and sales) as measured by the trend of property investment returns before-and-after budgetary expenditures. The results show that commercial property investment returns in the area increased after budgetary expenditure (road construction) took place. The results form the basis upon which the government should consider more budgetary allocations and expenditures related to road transportation infrastructure in its budgetary allocation decisions. The results also quantify the proposed alternative source of funding (property tax) that can be harnessed via capturing the increase in property investment returns.

The development and initial performance analysis of REITs in Ireland

PurposeThe inception of REITs in Ireland in 2013 presented an additional property investment opportunity to Ireland’s commercial property investment landscape. Importantly, the Irish REIT market is an institutional apparatus with an objective to rejuvenate Ireland’s commercial property market. The purpose of this paper is to provide an empirical validation of the performance of Irish REITs over the period March 2015 to February 2019 across several investment measures such as risk-adjusted returns and diversification benefits.Design/methodology/approachUsing monthly total returns in local currency, the risk-adjusted performance and portfolio diversification attributes of Irish REITs are assessed. The mean-variance framework is utilised to assess the potential added-value benefits of Irish REITs in a mixed-asset portfolio.FindingsIrish REITs delivered the strongest average annual return performance, lower relative volatility vs the stock market and competitive overall risk-adjusted performance. The results affirm the characteristic of Irish REITs as a total return-focussed income-driven property investment asset class. The optimal asset allocation analysis shows that Irish REITs are an important ingredient in a mixed-asset investment framework, as their allocation could be scaled effectively across the portfolio risk-return spectrum.Practical implicationsIrish REITs are an emerging investment opportunity for investors seeking exposure in the strongly performing property market in Ireland in the post-Global Financial Crisis period. They are also regarded as an effective alternative conduit to private investment routes (i.e. direct property and non-listed property funds), with the added advantage of being more liquid and versatile than their private property investment counterparts. Importantly, Irish REITs fulfilled the purpose for which they were originally designed. The promising initial performance observed in this paper gives a useful context to what the future might hold for Irish REITs, given the strong interest for commercial property assets in Ireland from both local and cross-border property investors.Originality/valueThis paper is the first empirical research aimed at providing an initial empirical performance validation of Irish REITs as an effective route to commercial property exposure in Ireland. This research enables empirically validated, more informed and practical property investment decision making regarding the strategic role of Irish REITs in a portfolio.

Impact of urban regeneration on commercial property values in Osogbo, Osun State, Nigeria

Purpose The purpose of this paper is to assess the effect of urban regeneration and renewal activities initiated by the Osun State Government in Nigeria on the rental values of commercial properties in Osogbo, the state capital between 2008, before the urban renewal programme through 2017, after the urban renewal programme had been completed. Design/methodology/approach Primary data utilised for this study were collected from all the Estate Surveying and Valuation firms involved in the formal management of commercial properties in Osogbo, Osun-State, Nigeria. Information on the types of urban infrastructure renewed and rental values of 63 commercial properties from 2008 to 2017 were obtained from the sampled estate surveying and valuation firms practicing in the study area. Data were analysed using descriptive statistics, analysis of variance and Duncan post hoc test. Findings The findings showed that physical urban infrastructure such as roads, drainages, water supply and wastes disposal have been upgraded in the study area. Also, the study established that the urban regeneration programme had significant impact on the rental values of commercial properties in Osogbo, arising from the statistically significant difference (F(7, 600) = 22.264, p<0.000) between and within annual rental values of commercial properties in the study area. The annual rental values of the commercial properties also exhibited considerable variation based on the Duncan post hoc test. Practical implications The findings from this study indicate that urban regeneration programme by the Osun state Government has significantly increased the investment performance of commercial properties in the study area. Hence, while investors could achieve higher returns on investment by venturing into commercial property investment, revenue could also be generated for government through the collection of property taxes in the study area. Originality/value This study is one of the few studies that have analysed the effect of urban regeneration programme on commercial property values from the perspective of an emerging African economy, using data from Osun State, Nigeria.

Valuation Inaccuracy: Implication on Commercial Property Investment Performance in Akure, Nigeria

Issues of valuation error have become one of the most significant challenges of the valuation profession lately. The derivation of property returns from commercial income and prices actually paid has cast a lot of doubt on the reliability of valuation opinion in the commercial property investment decision process. This study investigates the implication of valuation inaccuracy on investment performance of commercial properties in Akure, Nigeria. Questionnaires were administered to 25 registered and practicing Estate Surveyors and Valuers (ESVs) in Akure and 19 duly filled questionnaires were returned for analysis. Descriptive analysis was used to assess the level of inaccuracy and the factors influencing the valuation inaccuracy, while regression analysis was used to examine the effect of this inaccuracy on investment performance. It was discovered that the most common level of valuation inaccuracy in Akure is ±11-15% which is above the acceptable range of ±5%. It was also discovered that the various assumptions made by the valuers and the market indices used in carrying out valuation have the highest influence on the inaccuracy discovered in their valuation. From the simple linear regression analysis carried out, it was found that valuation inaccuracy has negative implication, at β=-.800, t=3.873, p>.05 on the investment performance. This shows that the higher the level of inaccuracy of valuation, the lower the performance of the investment. The result, however, indicates that the effect of valuation inaccuracy on commercial property investment performance is statistically insignificant. This study recommends that valuers in Akure should be very careful in making assumptions and be more vigilant regarding their use of market indices for valuations. It also recommends that valuers should be aware that investors rely on the accuracy of their valuations for making timely investment predictions and should therefore ensure conscientious efforts are put in place for accuracy of their valuations.

The emergence and performance of German REITs

PurposeGerman real estate investment trusts (REITs) are a small but important property investment vehicle in the European REIT landscape, offering German commercial property investment exposure in a liquid format, compared to the more property development-focused German listed property companies and the popular German open-ended property funds. The purpose of this paper is to assess the emergence of the German REIT market and the risk-adjusted performance and portfolio diversification benefits of German REITs in a mixed-asset portfolio over 2007-2015. The post-global financial crisis (GFC) recovery of German REITs is highlighted. Enabling strategies for the ongoing development of the German REIT market are also identified.Design/methodology/approachUsing monthly total returns, the risk-adjusted performance and portfolio diversification benefits of German REITs over 2007-2015 are assessed. Efficient frontier and asset allocation diagrams are used to assess the role of German REITs (and German property companies) in a mixed-asset portfolio. Sub-period analysis is used to assess the post-GFC recovery of German REITs.FindingsGerman REITs delivered lesser risk-adjusted returns compared to German stocks over 2007-2015, with limited portfolio diversification benefits. However, since the GFC, German REITs have delivered strong risk-adjusted returns, but with continued limited portfolio diversification benefits with German stocks. German REITs also out-performed German property companies. Importantly, this sees German REITs as strongly contributing to the German mixed-asset portfolio across the portfolio risk spectrum in the post-GFC environment.Practical implicationsGerman REITs are a small but important market at a local, European and global REIT level. The results highlight the major role of German REITs in a German mixed-asset portfolio in the post-GFC context. The strong risk-adjusted performance of German REITs compared to German stocks sees German REITs contributing to the mixed-asset portfolio across the portfolio risk spectrum. This is particularly important, as many investors (e.g. small pension funds) use German REITs (and German listed property companies) to obtain their German property exposure in a liquid format, as well as the increased importance of blended property portfolios of listed property and direct property.Originality/valueThis paper is the first published empirical research analysis of the risk-adjusted performance of German REITs, and the role of German REITs as a listed property vehicle in a mixed-asset portfolio. This research enables empirically validated, more informed and practical property investment decision making regarding the strategic role of German REITs in a portfolio.

Green Tax Incentives and Other Demand Factors Motivating Green Commercial Property Investment

In this study, we seek to identify and model the motivating factors that influence developers' and investors' decisions to invest in green commercial properties using structural equation modeling methods. Specifically, we model the effects of green building skills and green tax incentives on demand factors influencing green commercial property investment. The study is based on a survey of 350 real estate developers in Malaysia. The results show that monetary green tax incentives and green skills have significant casual effects on demand. Among these, personal and altruistic environmental motivations, corporate conscience responsibility motivations, and economic and financial motivations are significant. Green tax incentives, however, are found to have the most significant effect on green commercial property demand and investment.

A comparative computational and behavioral analysis of real estate performance

PurposeThe purpose of this paper is to investigate changes in the commercial real estate market dynamics as a function of and conditional to the shifts in market state-space environment that can influence agent responses.Design/methodology/approachThe analytical design uses a comparative computational experiment to address the performance of property assets in the current market based on comparison with prior structural patterns. The latent variables developed across market sectors are used to test agent behavior contingent on the perspectives of capital asset pricing conditionals (CAPM) and a behavioral momentum/herd construct. The state-space momentum analysis can assist the comparative analysis of current levels and shifts in property asset performance given the issues that have arisen with the financial crisis of 2007-2009.FindingsAn analytic approach is employed framed by a situation-dependent model. This frame considers risk profiles characterizing the perspectives and preferences guiding a delineated market state. This perspective is concerned with the possibility of shifts in market momentum and representativeness conditioning investor expectations. It is observed that the current market (post-crisis) has changed significantly from the prior operations (despite the diversity observed in prior market states). The dynamics of initial findings required an additional test anchored to the performance of the general capital market and the real economy across time. This context supports the use of a modified CAPM model allowing the consideration of opportunity cost in a space-time dynamic anchored with the consideration of equity, debt, riskless asset and liquidity options as they varied for the representative agents operating per market state.Research limitations/implicationsThis paper integrates neoclassical and behavioral economic constructs. Combines asset pricing with prospect theory and allows the calculation of endogenous time-preferences, risk attitudes and formulation and testing of hyperbolic discounting functions.Practical implicationsThe research shows that market structure and agent behavior since the financial crisis has changed from the investment and valuation perspectives operating as observed and measured from 1970 up to 2007. In contradiction to the long-term findings of Reinhart and Rogoff (2008), but in compliance with common perspectives and decision heuristics often employed by investors, this time things have changed! Discounting and expected rates of return are dynamic and are hyperbolic and not constant. Returns and investment for property assets are situational (market state-space specific) and offer a distinct asset class, not appropriately estimated by many of the traditional financial models.Social implicationsAssist in supporting insights to measure in errors and equations that result in inefficient resource allocation and beta discounting that supports the financial crisis created by assets subject to long-term decision needs (delta function).Originality/valueThe paper offers a combination and comparison of neoclassic asset pricing using a modified CAPM (two-pass) approach within the structural frame of Kahneman and Tversky’s (1979) prospect theory. This technique allows the consideration of the effects of present bias, beta-delta functions and the operation of the Allais Paradox in market states that are characterized by gains and losses and thus risk aversion and risk seeking behavior. This ability for differentiation allows for the development of endogenous time-preferences and hyperbolic discounting factors characteristic of commercial property investment.

Investment performance indicators of selected Lagos commercial properties

Purpose – The purpose of this paper is to identify drivers of investment performance of commercial property in Lagos with a view to preventing a rule of thumb approach to investments’ decisions. Design/methodology/approach – Questions theoretically underpinned on factors influencing commercial property investment performance were designed and administered to 125 real estate practitioners in Lagos in order to weigh the factors influencing commercial property investment performance in five selected locations in Lagos. The responses were analyzed using the mean item score and the principal component analysis, and the most critical factors extracted. Findings – Individual sub-markets reveal top factors common to each location as cost of building materials, location, quality of road infrastructure, rental growth and security. Findings across sub-markets reveal three critical set of factors. Condition of the premises; the second theme is a mixture of socio-cultural and legal framework; the third is also a mixture of socio-cultural, political and economic factors. Their factor loading’s are: 0.851, 0.828 and 0.805, respectively. Practical implications – Investors, appraisers and property managers may benefit from the findings as they make better investment and management decisions. Also adopting modern construction methods will cut unnecessary cost incurred from wastage of building materials and open the door to private investors with limited capital. Originality/value – This paper is the first to capture five different locations in Lagos. It goes beyond the study of Thontteh and Omirin (2014) which covered only one location. Thus, this study tends to present more reliable findings.

Waterspace Planning and the River Thames in London

London is a city that stands, for many, at the pinnacle of neoliberal global urbanization and market-led residential and commercial property investment. Its iconic River Thames has become a focus for much of this development, particularly of luxury apartments. There has been an emerging sense that the river increasingly has been captured by a specific set of class interests and its edges privatized to the exclusion of other claims on the Thames’ identity, usage and meaning. Although cognizant of the power of private and property interests and the leverage they may exercise through state mechanisms, this paper interprets London's ‘waterspace’ policy and planning in a way that rejects interpretations of the river that simplistically foreground the will of capital and global neoliberalism.

PŘÍSPĚVEK K ANALÝZE DEVELOPERSKÉHO TRHU V ČESKÉ REPUBLICE

Czech economy went through a substantial transformation in last two decades affecting business environments of all fields. This paper presents partial results of the Czech development market ana­ly­sis. It explains the characteristics of real-estate development, real-estate development market and the complexity of the real-estate development process, including market research, site selection (using feasibility analysis), due diligence, property acquisition, project design, obtaining entitlements, financing, construction, lease-up or sale or operation, if the project is retained as and asset.The significant growth in last decade of the analyzed market is slowing down due to current greater circumspection of banks when providing credits for new development projects, drop of real pro­per­ty prices in Western Europe and at the same time greater revenues from real properties in Eastern Europe. The inhibition of the investment in commercial real property (both what number of transactions concerns, and total volume of investment) is influenced by so-called mortgage crisis on the U. S. and British real estate market. In Czech market, the factors are reflected in a number of respects.The paper suggests future steps of the intended research, focus on identification of factors affecting decision-making process when preparing real-estate development project, finding interrelationships among these factors, quantification and setting weight of the factors, creation of a decision-making process model and its test on a real case. The model should contribute to decrease waste of time and money investment in these feasibility calculations by providing a tool which helps pre-select projects with higher chance of success in earlier phase.

Flooding and UK commercial property investment: what is the risk?

Purpose – This paper aims to examine the approach of UK institutional funds to considering flood risk to property investments in the light of their fiduciary duty, the widespread floods in 2007 and 2010 and the predicted increase in future incidence due to climate change. It explores the due diligence process and the challenges to investment decision-making and to property valuation. The case is made for further research to establish the extent of UK investment property potentially at risk from flooding, the degree of risk exposure and the way the risk is translated into valuations. Design/methodology/approach – A comprehensive literature review informed the design of interviews with senior managers in major investment funds, their professional advisers and other stakeholder representatives, including environmental consultants, valuers, solicitors, lenders and the insurance industry. Case studies illustrate how the due diligence process is used to identify risks, inform purchase decisions and devise mitigation and management actions. Findings – Property represents about 4 per cent of investments managed in the UK, but there is no clear picture of where and how much could be at risk of flooding. There is a common false assumption among investors that risk levels are unlikely to change and a reluctance to expose an otherwise hidden problem. Originality/value – Property is an important diversification asset in investment portfolios, underpinning individual pension, insurance and savings plans. Prior research indicated flood risk to commercial investment property was under-researched; a need for awareness raising; and for guidance relevant to investors and their professional advisers.

ASSESSING THE TREND IN RENTAL VALUES OF COMMERCIAL PROPERTIES ALONG OYEMEKUN ROAD AKURE, NIGERIA

Commercial property investment which is now very evident along Oyemekun Road, Akure, Nigeria, a place characterized hither to with residential development leaves investors at dark with the choice of commercial property investment. The commercial properties evident in the study area are Purpose-built office space, Converted office space and Shopping Complex. In a bid to lead investors aright on the best decision of the type of property to invest their hard earned income in, there was the study of the trends in rental values of the properties between 2006 and 2011 in order to discover that with the highest trend. This study which is a cross-sectional research that entailed the survey of the entire 22 Estate Surveying Firms in the study area made use of questionnaires as the primary source of data. There was also the use of both descriptive and inferential statistical techniques such as the frequency distribution table and the simple linear regression, and Analysis of Variance (ANOVA). From the study it was also revealed that although purpose built office space with the highest R 2 of 0.9 having the highest trend in rental values will result to a faster recoup of investment, the converted office space is most evident (53%) while the shopping complex is the most professionally managed (46%) respectively. The use of (ANOVA) coupled with Tukey post-hoc test reveals that the rental values of the three properties at the 95% confidence level are significantly different (p=0.000). The researchers therefore opines that the purpose built office space commanding the highest rent and trend should be the focus of both investors and even professional managing agents in order to maximize returns.

The Financialization of Business Property and What It Means for Cities and Regions

Halbert L., Henneberry J. and Mouzakis F. The financialization of business property and what it means for cities and regions, Regional Studies. The papers in the special issue examine the strategies and practices of investors and their relations with other actors involved in the production of business property. Although the globalization of these activities has occurred largely in the last 10–20 years, it has prompted marked changes in the geography of commercial property investment. International capital has flowed to a limited number of favoured locations, but because of the spatial fixity of real property, local actors and institutions remain an important influence on investment decisions. This poses challenges for urban development and regeneration policies that depend on private investment capital.

Inflation Correlation with Commercial Real Estate’ Investment Returns in Akure, Nigeria

This study aims at investigating the relationship between inflation and commercial real estate’ investment returns with a view to determining the inflation-hedging characteristics of commercial property investments in Akure metropolis, Nigeria. Questionnaire survey was conducted to obtain primary data on rental and capital values of commercial properties from branch managers of Estate Surveying and Valuation Firms in the study area. This was subsequently translated to the income, capital and total returns. Similarly, secondary data with respect to the Nigerian Consumer Price Index (CPI) which was used as a proxy for actual inflation and the 90-day Treasury bill rates (used as proxy for unexpected inflation) for the period between 2002 and 2012 were also collected from the National Bureau of Statistics (NBS) and the Central Bank of Nigeria (CBN), respectively. The unexpected inflation was calculated as the difference between the actual and expected inflation. The 3 groups of data sets obtained for the study were subjected to the Phillip-Perron unit root test as well as the Odinary Least Square Regression analysis. The