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Understanding the Commercial Real Estate Investment Ecosystem
Report

Understanding the Commercial Real Estate Investment Ecosystem

An Early Warning System Prototype

World Economic Forum, 2016 mais...

áudio gerado automaticamente
áudio gerado automaticamente

Editorial Rating

8

Qualities

  • Innovative
  • Overview

Recommendation

Commercial real estate is a critical part of an economy, and shifts in its valuations can have outsized impacts on business cycles. The World Economic Forum has created an early warning system to predict declines in the prices of commercial properties in 10 US cities. The model, once rolled out to more markets and assets, could help participants better manage their investments and mitigate losses associated with a downturn. This informative report provides a good overview of the drivers of the US commercial property market. getAbstract recommends this detailed description of an innovative forecasting tool to policy makers and real estate investors.

Take-Aways

  • Commercial real estate is an asset class subject to steep price fluctuations. The market also lacks consistent information necessary for informed decision making.
  • Upheavals in commercial real estate have consequences both for investors and for the broader economy.
  • A prototype of an early warning system that could signal an impending downturn focuses on the prices of office properties in 10 US cities and consists of a mix of national and local indicators.

About the Author

The World Economic Forum is an independent global organization that engages leaders of business, politics, academia and society to improve the state of the world.


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